Correlation Between Sakar Healthcare and Centum Electronics
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By analyzing existing cross correlation between Sakar Healthcare Limited and Centum Electronics Limited, you can compare the effects of market volatilities on Sakar Healthcare 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 Sakar Healthcare with a short position of Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sakar Healthcare and Centum Electronics.
Diversification Opportunities for Sakar Healthcare and Centum Electronics
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sakar and Centum is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sakar Healthcare 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 Sakar Healthcare 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 Sakar Healthcare 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 Sakar Healthcare i.e., Sakar Healthcare and Centum Electronics go up and down completely randomly.
Pair Corralation between Sakar Healthcare and Centum Electronics
Assuming the 90 days trading horizon Sakar Healthcare Limited is expected to under-perform the Centum Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Sakar Healthcare Limited is 2.04 times less risky than Centum Electronics. The stock trades about -0.08 of its potential returns per unit of risk. The Centum Electronics Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 175,500 in Centum Electronics Limited on October 18, 2024 and sell it today you would earn a total of 7,595 from holding Centum Electronics Limited or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sakar Healthcare Limited vs. Centum Electronics Limited
Performance |
| Timeline |
| Sakar Healthcare |
| Centum Electronics |
Sakar Healthcare and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sakar Healthcare and Centum Electronics
The main advantage of trading using opposite Sakar Healthcare and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sakar Healthcare 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.| Sakar Healthcare vs. Sarthak Metals Limited | Sakar Healthcare vs. Consolidated Construction Consortium | Sakar Healthcare vs. Action Construction Equipment | Sakar Healthcare vs. Bharat Road Network |
| Centum Electronics vs. Sakar Healthcare Limited | Centum Electronics vs. Yatra Online Limited | Centum Electronics vs. Global Health Limited | Centum Electronics vs. Medplus Health Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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