Correlation Between Golden Tobacco and Elin Electronics
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By analyzing existing cross correlation between Golden Tobacco Limited and Elin Electronics Limited, you can compare the effects of market volatilities on Golden Tobacco and Elin Electronics 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 Golden Tobacco with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Elin Electronics.
Diversification Opportunities for Golden Tobacco and Elin Electronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Golden and Elin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Golden Tobacco 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 Golden Tobacco Limited are associated (or correlated) with Elin Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elin Electronics has no effect on the direction of Golden Tobacco i.e., Golden Tobacco and Elin Electronics go up and down completely randomly.
Pair Corralation between Golden Tobacco and Elin Electronics
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to generate 1.22 times more return on investment than Elin Electronics. However, Golden Tobacco is 1.22 times more volatile than Elin Electronics Limited. It trades about -0.09 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.26 per unit of risk. If you would invest 4,001 in Golden Tobacco Limited on October 9, 2024 and sell it today you would lose (247.00) from holding Golden Tobacco Limited or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Tobacco Limited vs. Elin Electronics Limited
Performance |
| Timeline |
| Golden Tobacco |
| Elin Electronics |
Golden Tobacco and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and Elin Electronics
The main advantage of trading using opposite Golden Tobacco and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco position performs unexpectedly, Elin Electronics 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 Elin Electronics will offset losses from the drop in Elin Electronics' long position.| Golden Tobacco vs. Gangotri Textiles Limited | Golden Tobacco vs. Hemisphere Properties India | Golden Tobacco vs. Kingfa Science Technology | Golden Tobacco vs. Rico Auto Industries |
| Elin Electronics vs. Varun Beverages Limited | Elin Electronics vs. Cartrade Tech Limited | Elin Electronics vs. Cantabil Retail India | Elin Electronics vs. Silgo Retail Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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