Correlation Between Can Fin and Manaksia Steels
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By analyzing existing cross correlation between Can Fin Homes and Manaksia Steels Limited, you can compare the effects of market volatilities on Can Fin and Manaksia Steels 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 Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and Manaksia Steels.
Diversification Opportunities for Can Fin and Manaksia Steels
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Can and Manaksia is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels 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 Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of Can Fin i.e., Can Fin and Manaksia Steels go up and down completely randomly.
Pair Corralation between Can Fin and Manaksia Steels
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.46 times more return on investment than Manaksia Steels. However, Can Fin Homes is 2.18 times less risky than Manaksia Steels. It trades about -0.23 of its potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.13 per unit of risk. If you would invest 86,900 in Can Fin Homes on September 1, 2024 and sell it today you would lose (4,505) from holding Can Fin Homes or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Can Fin Homes vs. Manaksia Steels Limited
Performance |
| Timeline |
| Can Fin Homes |
| Manaksia Steels |
Can Fin and Manaksia Steels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and Manaksia Steels
The main advantage of trading using opposite Can Fin and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' long position.| Can Fin vs. Lemon Tree Hotels | Can Fin vs. Manaksia Coated Metals | Can Fin vs. EIH Associated Hotels | Can Fin vs. Action Construction Equipment |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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