Correlation Between Aries Agro and Can Fin
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By analyzing existing cross correlation between Aries Agro Limited and Can Fin Homes, you can compare the effects of market volatilities on Aries Agro 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 Aries Agro with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aries Agro and Can Fin.
Diversification Opportunities for Aries Agro and Can Fin
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aries and Can is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aries Agro 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 Aries Agro 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 Aries Agro 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 Aries Agro i.e., Aries Agro and Can Fin go up and down completely randomly.
Pair Corralation between Aries Agro and Can Fin
Assuming the 90 days trading horizon Aries Agro Limited is expected to generate 1.99 times more return on investment than Can Fin. However, Aries Agro is 1.99 times more volatile than Can Fin Homes. It trades about 0.1 of its potential returns per unit of risk. Can Fin Homes is currently generating about -0.05 per unit of risk. If you would invest 29,283 in Aries Agro Limited on August 31, 2024 and sell it today you would earn a total of 5,917 from holding Aries Agro Limited or generate 20.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Aries Agro Limited vs. Can Fin Homes
Performance |
| Timeline |
| Aries Agro Limited |
| Can Fin Homes |
Aries Agro and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aries Agro and Can Fin
The main advantage of trading using opposite Aries Agro and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aries Agro 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.| Aries Agro vs. BF Investment Limited | Aries Agro vs. Welspun Investments and | Aries Agro vs. Allied Blenders Distillers | Aries Agro vs. Network18 Media Investments |
| Can Fin vs. Univa Foods Limited | Can Fin vs. IDBI Bank Limited | Can Fin vs. Central Bank of | Can Fin vs. Apex Frozen Foods |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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