Correlation Between India Glycols and Centum Electronics
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By analyzing existing cross correlation between India Glycols Limited and Centum Electronics Limited, you can compare the effects of market volatilities on India Glycols and Centum 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 India Glycols with a short position of Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of India Glycols and Centum Electronics.
Diversification Opportunities for India Glycols and Centum Electronics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between India and Centum is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding India Glycols Limited and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics and India Glycols 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 India Glycols Limited are associated (or correlated) with Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of India Glycols i.e., India Glycols and Centum Electronics go up and down completely randomly.
Pair Corralation between India Glycols and Centum Electronics
Assuming the 90 days trading horizon India Glycols Limited is expected to generate 0.94 times more return on investment than Centum Electronics. However, India Glycols Limited is 1.06 times less risky than Centum Electronics. It trades about 0.01 of its potential returns per unit of risk. Centum Electronics Limited is currently generating about -0.16 per unit of risk. If you would invest 120,155 in India Glycols Limited on August 29, 2024 and sell it today you would lose (510.00) from holding India Glycols Limited or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
India Glycols Limited vs. Centum Electronics Limited
Performance |
| Timeline |
| India Glycols Limited |
| Centum Electronics |
India Glycols and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with India Glycols and Centum Electronics
The main advantage of trading using opposite India Glycols and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if India Glycols position performs unexpectedly, Centum 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 Centum Electronics will offset losses from the drop in Centum Electronics' long position.| India Glycols vs. Advani Hotels Resorts | India Glycols vs. Dhunseri Investments Limited | India Glycols vs. Lemon Tree Hotels | India Glycols vs. Kamat Hotels Limited |
| Centum Electronics vs. Reliance Industries Limited | Centum Electronics vs. Life Insurance | Centum Electronics vs. India Glycols Limited | Centum Electronics vs. Indo Borax Chemicals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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