Correlation Between Can Fin and Bodhi Tree
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By analyzing existing cross correlation between Can Fin Homes and Bodhi Tree Multimedia, you can compare the effects of market volatilities on Can Fin and Bodhi Tree 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 Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and Bodhi Tree.
Diversification Opportunities for Can Fin and Bodhi Tree
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Can and Bodhi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia 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 Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of Can Fin i.e., Can Fin and Bodhi Tree go up and down completely randomly.
Pair Corralation between Can Fin and Bodhi Tree
Assuming the 90 days trading horizon Can Fin Homes is expected to under-perform the Bodhi Tree. But the stock apears to be less risky and, when comparing its historical volatility, Can Fin Homes is 2.6 times less risky than Bodhi Tree. The stock trades about -0.35 of its potential returns per unit of risk. The Bodhi Tree Multimedia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,202 in Bodhi Tree Multimedia on October 10, 2024 and sell it today you would earn a total of 87.00 from holding Bodhi Tree Multimedia or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fin Homes vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| Can Fin Homes |
| Bodhi Tree Multimedia |
Can Fin and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and Bodhi Tree
The main advantage of trading using opposite Can Fin and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| Can Fin vs. Reliance Industries Limited | Can Fin vs. HDFC Bank Limited | Can Fin vs. Tata Consultancy Services | Can Fin vs. Bharti Airtel Limited |
| Bodhi Tree vs. Reliance Industries Limited | Bodhi Tree vs. Tata Motors Limited | Bodhi Tree vs. Oil Natural Gas | Bodhi Tree vs. HCL Technologies 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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