Correlation Between ADF Foods and Can Fin
Specify exactly 2 symbols:
By analyzing existing cross correlation between ADF Foods Limited and Can Fin Homes, you can compare the effects of market volatilities on ADF Foods 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 ADF Foods with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADF Foods and Can Fin.
Diversification Opportunities for ADF Foods and Can Fin
Very weak diversification
The 3 months correlation between ADF and Can is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ADF Foods 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 ADF Foods 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 ADF Foods 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 ADF Foods i.e., ADF Foods and Can Fin go up and down completely randomly.
Pair Corralation between ADF Foods and Can Fin
Assuming the 90 days trading horizon ADF Foods Limited is expected to under-perform the Can Fin. In addition to that, ADF Foods is 1.54 times more volatile than Can Fin Homes. It trades about -0.18 of its total potential returns per unit of risk. Can Fin Homes is currently generating about -0.26 per unit of volatility. If you would invest 75,300 in Can Fin Homes on October 30, 2024 and sell it today you would lose (7,895) from holding Can Fin Homes or give up 10.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADF Foods Limited vs. Can Fin Homes
Performance |
| Timeline |
| ADF Foods Limited |
| Can Fin Homes |
ADF Foods and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADF Foods and Can Fin
The main advantage of trading using opposite ADF Foods and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADF Foods 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.| ADF Foods vs. Gangotri Textiles Limited | ADF Foods vs. Hemisphere Properties India | ADF Foods vs. Kingfa Science Technology | ADF Foods vs. Rico Auto Industries |
| Can Fin vs. 63 moons technologies | Can Fin vs. PB Fintech Limited | Can Fin vs. Goldstone Technologies Limited | Can Fin vs. Generic Engineering Construction |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |