Correlation Between Union Bank and Elin Electronics
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By analyzing existing cross correlation between Union Bank of and Elin Electronics Limited, you can compare the effects of market volatilities on Union Bank 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 Union Bank with a short position of Elin Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Elin Electronics.
Diversification Opportunities for Union Bank and Elin Electronics
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Elin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of and Elin Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elin Electronics and Union Bank 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 Union Bank of 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 Union Bank i.e., Union Bank and Elin Electronics go up and down completely randomly.
Pair Corralation between Union Bank and Elin Electronics
Assuming the 90 days trading horizon Union Bank of is expected to generate 0.85 times more return on investment than Elin Electronics. However, Union Bank of is 1.18 times less risky than Elin Electronics. It trades about -0.18 of its potential returns per unit of risk. Elin Electronics Limited is currently generating about -0.36 per unit of risk. If you would invest 12,100 in Union Bank of on October 20, 2024 and sell it today you would lose (1,230) from holding Union Bank of or give up 10.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Union Bank of vs. Elin Electronics Limited
Performance |
| Timeline |
| Union Bank |
| Elin Electronics |
Union Bank and Elin Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Elin Electronics
The main advantage of trading using opposite Union Bank and Elin Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank 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.| Union Bank vs. Global Health Limited | Union Bank vs. Tata Communications Limited | Union Bank vs. V2 Retail Limited | Union Bank vs. Baazar Style Retail |
| Elin Electronics vs. The Investment Trust | Elin Electronics vs. Kalyani Investment | Elin Electronics vs. UTI Asset Management | Elin Electronics vs. Indian Metals Ferro |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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