Correlation Between Baazar Style and Elin Electronics
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By analyzing existing cross correlation between Baazar Style Retail and Elin Electronics Limited, you can compare the effects of market volatilities on Baazar Style 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 Baazar Style with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and Elin Electronics.
Diversification Opportunities for Baazar Style and Elin Electronics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baazar and Elin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Baazar Style 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 Baazar Style Retail 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 Baazar Style i.e., Baazar Style and Elin Electronics go up and down completely randomly.
Pair Corralation between Baazar Style and Elin Electronics
Assuming the 90 days trading horizon Baazar Style Retail is expected to generate 1.42 times more return on investment than Elin Electronics. However, Baazar Style is 1.42 times more volatile than Elin Electronics Limited. It trades about 0.25 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about 0.12 per unit of risk. If you would invest 31,740 in Baazar Style Retail on September 14, 2024 and sell it today you would earn a total of 4,395 from holding Baazar Style Retail or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baazar Style Retail vs. Elin Electronics Limited
Performance |
| Timeline |
| Baazar Style Retail |
| Elin Electronics |
Baazar Style and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and Elin Electronics
The main advantage of trading using opposite Baazar Style and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style 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.| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. State Bank of |
| Elin Electronics vs. Reliance Industries Limited | Elin Electronics vs. Oil Natural Gas | Elin Electronics vs. ICICI Bank Limited | Elin Electronics vs. Bharti Airtel 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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