Correlation Between Can Fin and Sukhjit Starch
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By analyzing existing cross correlation between Can Fin Homes and Sukhjit Starch Chemicals, you can compare the effects of market volatilities on Can Fin and Sukhjit Starch 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 Sukhjit Starch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and Sukhjit Starch.
Diversification Opportunities for Can Fin and Sukhjit Starch
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Can and Sukhjit is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and Sukhjit Starch Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sukhjit Starch Chemicals 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 Sukhjit Starch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sukhjit Starch Chemicals has no effect on the direction of Can Fin i.e., Can Fin and Sukhjit Starch go up and down completely randomly.
Pair Corralation between Can Fin and Sukhjit Starch
Assuming the 90 days trading horizon Can Fin Homes is expected to under-perform the Sukhjit Starch. But the stock apears to be less risky and, when comparing its historical volatility, Can Fin Homes is 2.21 times less risky than Sukhjit Starch. The stock trades about -0.23 of its potential returns per unit of risk. The Sukhjit Starch Chemicals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 24,915 in Sukhjit Starch Chemicals on September 1, 2024 and sell it today you would earn a total of 1,953 from holding Sukhjit Starch Chemicals or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fin Homes vs. Sukhjit Starch Chemicals
Performance |
| Timeline |
| Can Fin Homes |
| Sukhjit Starch Chemicals |
Can Fin and Sukhjit Starch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and Sukhjit Starch
The main advantage of trading using opposite Can Fin and Sukhjit Starch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, Sukhjit Starch 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 Sukhjit Starch will offset losses from the drop in Sukhjit Starch's 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 |
| Sukhjit Starch vs. Sumitomo Chemical India | Sukhjit Starch vs. DMCC SPECIALITY CHEMICALS | Sukhjit Starch vs. California Software | Sukhjit Starch vs. Selan Exploration Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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