Correlation Between Investment Trust and Elin Electronics
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By analyzing existing cross correlation between The Investment Trust and Elin Electronics Limited, you can compare the effects of market volatilities on Investment Trust 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 Investment Trust with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Elin Electronics.
Diversification Opportunities for Investment Trust and Elin Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investment and Elin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Investment Trust 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 The Investment Trust 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 Investment Trust i.e., Investment Trust and Elin Electronics go up and down completely randomly.
Pair Corralation between Investment Trust and Elin Electronics
Assuming the 90 days trading horizon The Investment Trust is expected to generate 0.68 times more return on investment than Elin Electronics. However, The Investment Trust is 1.48 times less risky than Elin Electronics. It trades about -0.22 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.33 per unit of risk. If you would invest 20,234 in The Investment Trust on October 30, 2024 and sell it today you would lose (3,339) from holding The Investment Trust or give up 16.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. Elin Electronics Limited
Performance |
| Timeline |
| Investment Trust |
| Elin Electronics |
Investment Trust and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Elin Electronics
The main advantage of trading using opposite Investment Trust and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust 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.| Investment Trust vs. State Bank of | Investment Trust vs. Reliance Industries Limited | Investment Trust vs. HDFC Bank Limited | Investment Trust vs. Tata Motors Limited |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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