Correlation Between Can Fin and GM Breweries
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By analyzing existing cross correlation between Can Fin Homes and GM Breweries Limited, you can compare the effects of market volatilities on Can Fin and GM Breweries 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 GM Breweries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and GM Breweries.
Diversification Opportunities for Can Fin and GM Breweries
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Can and GMBREW is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and GM Breweries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GM Breweries Limited 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 GM Breweries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GM Breweries Limited has no effect on the direction of Can Fin i.e., Can Fin and GM Breweries go up and down completely randomly.
Pair Corralation between Can Fin and GM Breweries
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.81 times more return on investment than GM Breweries. However, Can Fin Homes is 1.23 times less risky than GM Breweries. It trades about -0.21 of its potential returns per unit of risk. GM Breweries Limited is currently generating about -0.18 per unit of risk. If you would invest 74,900 in Can Fin Homes on October 28, 2024 and sell it today you would lose (6,630) from holding Can Fin Homes or give up 8.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fin Homes vs. GM Breweries Limited
Performance |
| Timeline |
| Can Fin Homes |
| GM Breweries Limited |
Can Fin and GM Breweries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and GM Breweries
The main advantage of trading using opposite Can Fin and GM Breweries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, GM Breweries 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 GM Breweries will offset losses from the drop in GM Breweries' long position.| Can Fin vs. Agro Tech Foods | Can Fin vs. Kohinoor Foods Limited | Can Fin vs. ADF Foods Limited | Can Fin vs. Fine Organic Industries |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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