Correlation Between Cantabil Retail and Agarwal Industrial
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By analyzing existing cross correlation between Cantabil Retail India and Agarwal Industrial, you can compare the effects of market volatilities on Cantabil Retail and Agarwal Industrial 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 Cantabil Retail with a short position of Agarwal Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Agarwal Industrial.
Diversification Opportunities for Cantabil Retail and Agarwal Industrial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cantabil and Agarwal is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Agarwal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agarwal Industrial and Cantabil Retail 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 Cantabil Retail India are associated (or correlated) with Agarwal Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agarwal Industrial has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Agarwal Industrial go up and down completely randomly.
Pair Corralation between Cantabil Retail and Agarwal Industrial
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 1.32 times more return on investment than Agarwal Industrial. However, Cantabil Retail is 1.32 times more volatile than Agarwal Industrial. It trades about 0.22 of its potential returns per unit of risk. Agarwal Industrial is currently generating about -0.1 per unit of risk. If you would invest 24,344 in Cantabil Retail India on November 8, 2024 and sell it today you would earn a total of 7,871 from holding Cantabil Retail India or generate 32.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantabil Retail India vs. Agarwal Industrial
Performance |
| Timeline |
| Cantabil Retail India |
| Agarwal Industrial |
Cantabil Retail and Agarwal Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Agarwal Industrial
The main advantage of trading using opposite Cantabil Retail and Agarwal Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Agarwal Industrial 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 Agarwal Industrial will offset losses from the drop in Agarwal Industrial's long position.| Cantabil Retail vs. Kaynes Technology India | Cantabil Retail vs. Sintex Plastics Technology | Cantabil Retail vs. Newgen Software Technologies | Cantabil Retail vs. Compucom Software 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 Stocks Directory module to find actively traded stocks across global markets.
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