Correlation Between Can Fin and California Software
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By analyzing existing cross correlation between Can Fin Homes and California Software, you can compare the effects of market volatilities on Can Fin and California Software 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 California Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and California Software.
Diversification Opportunities for Can Fin and California Software
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Can and California is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and California Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California Software 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 California Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California Software has no effect on the direction of Can Fin i.e., Can Fin and California Software go up and down completely randomly.
Pair Corralation between Can Fin and California Software
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.62 times more return on investment than California Software. However, Can Fin Homes is 1.62 times less risky than California Software. It trades about 0.05 of its potential returns per unit of risk. California Software is currently generating about 0.01 per unit of risk. If you would invest 55,162 in Can Fin Homes on August 30, 2024 and sell it today you would earn a total of 27,463 from holding Can Fin Homes or generate 49.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Can Fin Homes vs. California Software
Performance |
| Timeline |
| Can Fin Homes |
| California Software |
Can Fin and California Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and California Software
The main advantage of trading using opposite Can Fin and California Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, California Software 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 California Software will offset losses from the drop in California Software's long position.| Can Fin vs. MRF Limited | Can Fin vs. Bosch Limited | Can Fin vs. Bajaj Holdings Investment | Can Fin vs. Vardhman Holdings Limited |
| California Software vs. Reliance Industries Limited | California Software vs. Oil Natural Gas | California Software vs. Power Finance | California Software vs. Indian Oil |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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