Correlation Between Can Fin and V Mart
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By analyzing existing cross correlation between Can Fin Homes and V Mart Retail Limited, you can compare the effects of market volatilities on Can Fin and V Mart 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 V Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fin and V Mart.
Diversification Opportunities for Can Fin and V Mart
Average diversification
The 3 months correlation between Can and VMART is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Can Fin Homes and V Mart Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V Mart Retail 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 V Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V Mart Retail has no effect on the direction of Can Fin i.e., Can Fin and V Mart go up and down completely randomly.
Pair Corralation between Can Fin and V Mart
Assuming the 90 days trading horizon Can Fin Homes is expected to generate 0.38 times more return on investment than V Mart. However, Can Fin Homes is 2.62 times less risky than V Mart. It trades about -0.2 of its potential returns per unit of risk. V Mart Retail Limited is currently generating about -0.24 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 Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Can Fin Homes vs. V Mart Retail Limited
Performance |
| Timeline |
| Can Fin Homes |
| V Mart Retail |
Can Fin and V Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fin and V Mart
The main advantage of trading using opposite Can Fin and V Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fin position performs unexpectedly, V Mart 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 V Mart will offset losses from the drop in V Mart's 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 |
| V Mart vs. Reliance Industries Limited | V Mart vs. Indian Oil | V Mart vs. HDFC Bank Limited | V Mart vs. Divis Laboratories 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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