Correlation Between Cantabil Retail and BF Investment
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By analyzing existing cross correlation between Cantabil Retail India and BF Investment Limited, you can compare the effects of market volatilities on Cantabil Retail and BF Investment 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 BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and BF Investment.
Diversification Opportunities for Cantabil Retail and BF Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantabil and BFINVEST is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment Limited 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 BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and BF Investment go up and down completely randomly.
Pair Corralation between Cantabil Retail and BF Investment
Assuming the 90 days trading horizon Cantabil Retail India is expected to under-perform the BF Investment. But the stock apears to be less risky and, when comparing its historical volatility, Cantabil Retail India is 2.27 times less risky than BF Investment. The stock trades about 0.0 of its potential returns per unit of risk. The BF Investment Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 66,805 in BF Investment Limited on August 31, 2024 and sell it today you would earn a total of 6,745 from holding BF Investment Limited or generate 10.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantabil Retail India vs. BF Investment Limited
Performance |
| Timeline |
| Cantabil Retail India |
| BF Investment Limited |
Cantabil Retail and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and BF Investment
The main advantage of trading using opposite Cantabil Retail and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| Cantabil Retail vs. Avonmore Capital Management | Cantabil Retail vs. HDFC Asset Management | Cantabil Retail vs. Ratnamani Metals Tubes | Cantabil Retail vs. Kalyani Investment |
| BF Investment vs. Manaksia Steels Limited | BF Investment vs. Steelcast Limited | BF Investment vs. Kohinoor Foods Limited | BF Investment vs. Varun Beverages 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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