Correlation Between Spencers Retail and EPL
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By analyzing existing cross correlation between Spencers Retail Limited and EPL Limited, you can compare the effects of market volatilities on Spencers Retail and EPL 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 EPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and EPL.
Diversification Opportunities for Spencers Retail and EPL
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spencers and EPL is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and EPL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPL Limited 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 EPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPL Limited has no effect on the direction of Spencers Retail i.e., Spencers Retail and EPL go up and down completely randomly.
Pair Corralation between Spencers Retail and EPL
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the EPL. In addition to that, Spencers Retail is 1.5 times more volatile than EPL Limited. It trades about -0.01 of its total potential returns per unit of risk. EPL Limited is currently generating about 0.07 per unit of volatility. If you would invest 19,687 in EPL Limited on September 14, 2024 and sell it today you would earn a total of 7,973 from holding EPL Limited or generate 40.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Spencers Retail Limited vs. EPL Limited
Performance |
| Timeline |
| Spencers Retail |
| EPL Limited |
Spencers Retail and EPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and EPL
The main advantage of trading using opposite Spencers Retail and EPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, EPL 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 EPL will offset losses from the drop in EPL's 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 |
| EPL vs. BF Utilities Limited | EPL vs. Kilitch Drugs Limited | EPL vs. Akums Drugs and | EPL vs. Aarti Drugs 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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