Correlation Between Can Fin and AVALON TECHNOLOGIES
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By analyzing existing cross correlation between Can Fin Homes and AVALON TECHNOLOGIES LTD, you can compare the effects of market volatilities on Can Fin and AVALON TECHNOLOGIES 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 Can Fin with a short position of AVALON TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and AVALON TECHNOLOGIES.
Diversification Opportunities for Can Fin and AVALON TECHNOLOGIES
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Can and AVALON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and AVALON TECHNOLOGIES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVALON TECHNOLOGIES LTD and Can Fin 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 Can Fin Homes are associated (or correlated) with AVALON TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVALON TECHNOLOGIES LTD has no effect on the direction of Can Fin i.e., Can Fin and AVALON TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Can Fin and AVALON TECHNOLOGIES
Assuming the 90 days trading horizon Can Fin is expected to generate 2.91 times less return on investment than AVALON TECHNOLOGIES. But when comparing it to its historical volatility, Can Fin Homes is 1.51 times less risky than AVALON TECHNOLOGIES. It trades about 0.03 of its potential returns per unit of risk. AVALON TECHNOLOGIES LTD is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 39,800 in AVALON TECHNOLOGIES LTD on October 25, 2024 and sell it today you would earn a total of 31,850 from holding AVALON TECHNOLOGIES LTD or generate 80.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.14% |
| Values | Daily Returns |
Can Fin Homes vs. AVALON TECHNOLOGIES LTD
Performance |
| Timeline |
| Can Fin Homes |
| AVALON TECHNOLOGIES LTD |
Can Fin and AVALON TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and AVALON TECHNOLOGIES
The main advantage of trading using opposite Can Fin and AVALON TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, AVALON TECHNOLOGIES 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 AVALON TECHNOLOGIES will offset losses from the drop in AVALON TECHNOLOGIES's long position.| Can Fin vs. LLOYDS METALS AND | Can Fin vs. Sarthak Metals Limited | Can Fin vs. Spencers Retail Limited | Can Fin vs. Osia Hyper Retail |
| AVALON TECHNOLOGIES vs. Reliance Industries Limited | AVALON TECHNOLOGIES vs. Life Insurance | AVALON TECHNOLOGIES vs. Oil Natural Gas | AVALON TECHNOLOGIES vs. Indo Borax Chemicals |
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.
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