Correlation Between Can Fin and Ortel Communications
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By analyzing existing cross correlation between Can Fin Homes and Ortel Communications Limited, you can compare the effects of market volatilities on Can Fin and Ortel Communications 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 Ortel Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and Ortel Communications.
Diversification Opportunities for Can Fin and Ortel Communications
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Can and Ortel is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and Ortel Communications Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ortel Communications 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 Ortel Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ortel Communications has no effect on the direction of Can Fin i.e., Can Fin and Ortel Communications go up and down completely randomly.
Pair Corralation between Can Fin and Ortel Communications
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.75 times more return on investment than Ortel Communications. However, Can Fin Homes is 1.33 times less risky than Ortel Communications. It trades about -0.2 of its potential returns per unit of risk. Ortel Communications Limited is currently generating about -0.43 per unit of risk. If you would invest 86,740 in Can Fin Homes on August 24, 2024 and sell it today you would lose (4,475) from holding Can Fin Homes or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fin Homes vs. Ortel Communications Limited
Performance |
| Timeline |
| Can Fin Homes |
| Ortel Communications |
Can Fin and Ortel Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and Ortel Communications
The main advantage of trading using opposite Can Fin and Ortel Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, Ortel Communications 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 Ortel Communications will offset losses from the drop in Ortel Communications' long position.| Can Fin vs. MRF Limited | Can Fin vs. Honeywell Automation India | Can Fin vs. Divis Laboratories Limited | Can Fin vs. Indo Borax Chemicals |
| Ortel Communications vs. Modi Rubber Limited | Ortel Communications vs. United Breweries Limited | Ortel Communications vs. Repco Home Finance | Ortel Communications vs. Landmark Cars 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 CEOs Directory module to screen CEOs from public companies around the world.
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