Correlation Between Centum Electronics and Sakar Healthcare
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By analyzing existing cross correlation between Centum Electronics Limited and Sakar Healthcare Limited, you can compare the effects of market volatilities on Centum Electronics and Sakar Healthcare 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 Centum Electronics with a short position of Sakar Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centum Electronics and Sakar Healthcare.
Diversification Opportunities for Centum Electronics and Sakar Healthcare
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centum and Sakar is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Centum Electronics Limited and Sakar Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakar Healthcare and Centum Electronics 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 Centum Electronics Limited are associated (or correlated) with Sakar Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakar Healthcare has no effect on the direction of Centum Electronics i.e., Centum Electronics and Sakar Healthcare go up and down completely randomly.
Pair Corralation between Centum Electronics and Sakar Healthcare
Assuming the 90 days trading horizon Centum Electronics Limited is expected to under-perform the Sakar Healthcare. In addition to that, Centum Electronics is 1.34 times more volatile than Sakar Healthcare Limited. It trades about -0.14 of its total potential returns per unit of risk. Sakar Healthcare Limited is currently generating about -0.13 per unit of volatility. If you would invest 30,235 in Sakar Healthcare Limited on December 23, 2024 and sell it today you would lose (6,214) from holding Sakar Healthcare Limited or give up 20.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Centum Electronics Limited vs. Sakar Healthcare Limited
Performance |
Timeline |
Centum Electronics |
Sakar Healthcare |
Centum Electronics and Sakar Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Centum Electronics and Sakar Healthcare
The main advantage of trading using opposite Centum Electronics and Sakar Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centum Electronics position performs unexpectedly, Sakar Healthcare 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 Sakar Healthcare will offset losses from the drop in Sakar Healthcare's long position.Centum Electronics vs. Sapphire Foods India | Centum Electronics vs. Total Transport Systems | Centum Electronics vs. Rajnandini Metal Limited | Centum Electronics vs. Sarthak Metals Limited |
Sakar Healthcare vs. HMT Limited | Sakar Healthcare vs. KIOCL Limited | Sakar Healthcare vs. Punjab Sind Bank | Sakar Healthcare vs. ITI 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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