Correlation Between Electronics Mart and UTI Asset
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By analyzing existing cross correlation between Electronics Mart India and UTI Asset Management, you can compare the effects of market volatilities on Electronics Mart and UTI Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Electronics Mart with a short position of UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and UTI Asset.
Diversification Opportunities for Electronics Mart and UTI Asset
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Electronics and UTI is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management and Electronics Mart is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Electronics Mart India are associated (or correlated) with UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of Electronics Mart i.e., Electronics Mart and UTI Asset go up and down completely randomly.
Pair Corralation between Electronics Mart and UTI Asset
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the UTI Asset. But the stock apears to be less risky and, when comparing its historical volatility, Electronics Mart India is 1.09 times less risky than UTI Asset. The stock trades about -0.17 of its potential returns per unit of risk. The UTI Asset Management is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 114,685 in UTI Asset Management on November 28, 2024 and sell it today you would lose (16,885) from holding UTI Asset Management or give up 14.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. UTI Asset Management
Performance |
| Timeline |
| Electronics Mart India |
| UTI Asset Management |
Electronics Mart and UTI Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and UTI Asset
The main advantage of trading using opposite Electronics Mart and UTI Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, UTI Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in UTI Asset will offset losses from the drop in UTI Asset's long position.| Electronics Mart vs. Home First Finance | Electronics Mart vs. Beta Drugs | Electronics Mart vs. Embassy Office Parks | Electronics Mart vs. Indraprastha Medical |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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