Correlation Between Salzer Electronics and Gillette India
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salzer Electronics Limited and Gillette India Limited, you can compare the effects of market volatilities on Salzer Electronics and Gillette India 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 Salzer Electronics with a short position of Gillette India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salzer Electronics and Gillette India.
Diversification Opportunities for Salzer Electronics and Gillette India
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salzer and Gillette is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Salzer Electronics Limited and Gillette India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gillette India and Salzer 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 Salzer Electronics Limited are associated (or correlated) with Gillette India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gillette India has no effect on the direction of Salzer Electronics i.e., Salzer Electronics and Gillette India go up and down completely randomly.
Pair Corralation between Salzer Electronics and Gillette India
Assuming the 90 days trading horizon Salzer Electronics Limited is expected to generate 2.31 times more return on investment than Gillette India. However, Salzer Electronics is 2.31 times more volatile than Gillette India Limited. It trades about 0.7 of its potential returns per unit of risk. Gillette India Limited is currently generating about -0.34 per unit of risk. If you would invest 101,565 in Salzer Electronics Limited on September 24, 2024 and sell it today you would earn a total of 58,050 from holding Salzer Electronics Limited or generate 57.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Salzer Electronics Limited vs. Gillette India Limited
Performance |
Timeline |
Salzer Electronics |
Gillette India |
Salzer Electronics and Gillette India Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Salzer Electronics and Gillette India
The main advantage of trading using opposite Salzer Electronics and Gillette India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salzer Electronics position performs unexpectedly, Gillette India 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 Gillette India will offset losses from the drop in Gillette India's long position.Salzer Electronics vs. State Bank of | Salzer Electronics vs. Life Insurance | Salzer Electronics vs. HDFC Bank Limited | Salzer Electronics vs. ICICI Bank Limited |
Gillette India vs. Neogen Chemicals Limited | Gillette India vs. Salzer Electronics Limited | Gillette India vs. Shyam Metalics and | Gillette India vs. JGCHEMICALS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |