Correlation Between Spencers Retail and Elin Electronics
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By analyzing existing cross correlation between Spencers Retail Limited and Elin Electronics Limited, you can compare the effects of market volatilities on Spencers Retail 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 Spencers Retail with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Elin Electronics.
Diversification Opportunities for Spencers Retail and Elin Electronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spencers and Elin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail 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 Spencers Retail 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 Spencers Retail 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 Spencers Retail i.e., Spencers Retail and Elin Electronics go up and down completely randomly.
Pair Corralation between Spencers Retail and Elin Electronics
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 1.43 times more return on investment than Elin Electronics. However, Spencers Retail is 1.43 times more volatile than Elin Electronics Limited. It trades about 0.04 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.4 per unit of risk. If you would invest 8,205 in Spencers Retail Limited on October 27, 2024 and sell it today you would earn a total of 119.00 from holding Spencers Retail Limited or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. Elin Electronics Limited
Performance |
| Timeline |
| Spencers Retail |
| Elin Electronics |
Spencers Retail and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Elin Electronics
The main advantage of trading using opposite Spencers Retail and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail 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.| Spencers Retail vs. Kingfa Science Technology | Spencers Retail vs. Rico Auto Industries | Spencers Retail vs. GACM Technologies Limited | Spencers Retail vs. COSMO FIRST LIMITED |
| Elin Electronics vs. Kingfa Science Technology | Elin Electronics vs. Rico Auto Industries | Elin Electronics vs. GACM Technologies Limited | Elin Electronics vs. COSMO FIRST 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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