Correlation Between Syrma SGS and Elin Electronics
Can any of the company-specific risk be diversified away by investing in both Syrma SGS and Elin Electronics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Syrma SGS and Elin Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syrma SGS Technology and Elin Electronics Limited, you can compare the effects of market volatilities on Syrma SGS 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 Syrma SGS with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syrma SGS and Elin Electronics.
Diversification Opportunities for Syrma SGS and Elin Electronics
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Syrma and Elin is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Syrma SGS Technology and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Syrma SGS 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 Syrma SGS Technology 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 Syrma SGS i.e., Syrma SGS and Elin Electronics go up and down completely randomly.
Pair Corralation between Syrma SGS and Elin Electronics
Assuming the 90 days trading horizon Syrma SGS Technology is expected to generate 1.19 times more return on investment than Elin Electronics. However, Syrma SGS is 1.19 times more volatile than Elin Electronics Limited. It trades about 0.08 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.14 per unit of risk. If you would invest 44,465 in Syrma SGS Technology on October 18, 2024 and sell it today you would earn a total of 9,330 from holding Syrma SGS Technology or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syrma SGS Technology vs. Elin Electronics Limited
Performance |
| Timeline |
| Syrma SGS Technology |
| Elin Electronics |
Syrma SGS and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syrma SGS and Elin Electronics
The main advantage of trading using opposite Syrma SGS and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syrma SGS 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.| Syrma SGS vs. Medplus Health Services | Syrma SGS vs. Navneet Education Limited | Syrma SGS vs. The Byke Hospitality | Syrma SGS vs. Parag Milk Foods |
| Elin Electronics vs. Kalyani Investment | Elin Electronics vs. Syrma SGS Technology | Elin Electronics vs. Sonata Software Limited | Elin Electronics vs. Selan Exploration Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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