Correlation Between Aban Offshore and Can Fin
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By analyzing existing cross correlation between Aban Offshore Limited and Can Fin Homes, you can compare the effects of market volatilities on Aban Offshore and Can Fin 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 Aban Offshore with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aban Offshore and Can Fin.
Diversification Opportunities for Aban Offshore and Can Fin
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aban and Can is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aban Offshore Limited and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and Aban Offshore 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 Aban Offshore Limited are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Aban Offshore i.e., Aban Offshore and Can Fin go up and down completely randomly.
Pair Corralation between Aban Offshore and Can Fin
Assuming the 90 days trading horizon Aban Offshore Limited is expected to generate 1.56 times more return on investment than Can Fin. However, Aban Offshore is 1.56 times more volatile than Can Fin Homes. It trades about 0.04 of its potential returns per unit of risk. Can Fin Homes is currently generating about 0.06 per unit of risk. If you would invest 4,510 in Aban Offshore Limited on September 13, 2024 and sell it today you would earn a total of 2,502 from holding Aban Offshore Limited or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Aban Offshore Limited vs. Can Fin Homes
Performance |
| Timeline |
| Aban Offshore Limited |
| Can Fin Homes |
Aban Offshore and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aban Offshore and Can Fin
The main advantage of trading using opposite Aban Offshore and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aban Offshore position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| Aban Offshore vs. Digjam Limited | Aban Offshore vs. Gujarat Raffia Industries | Aban Offshore vs. State Bank of | Aban Offshore vs. Zomato Limited |
| Can Fin vs. Network18 Media Investments | Can Fin vs. Touchwood Entertainment Limited | Can Fin vs. Hindustan Media Ventures | Can Fin vs. Garuda Construction Engineering |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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