Correlation Between Cantabil Retail and Electronics Mart
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By analyzing existing cross correlation between Cantabil Retail India and Electronics Mart India, you can compare the effects of market volatilities on Cantabil Retail and Electronics 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 Cantabil Retail with a short position of Electronics Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Electronics Mart.
Diversification Opportunities for Cantabil Retail and Electronics Mart
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cantabil and Electronics is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Electronics Mart India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronics Mart India 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 Electronics Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronics Mart India has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Electronics Mart go up and down completely randomly.
Pair Corralation between Cantabil Retail and Electronics Mart
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 0.5 times more return on investment than Electronics Mart. However, Cantabil Retail India is 1.98 times less risky than Electronics Mart. It trades about 0.02 of its potential returns per unit of risk. Electronics Mart India is currently generating about -0.15 per unit of risk. If you would invest 22,710 in Cantabil Retail India on August 25, 2024 and sell it today you would earn a total of 128.00 from holding Cantabil Retail India or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantabil Retail India vs. Electronics Mart India
Performance |
| Timeline |
| Cantabil Retail India |
| Electronics Mart India |
Cantabil Retail and Electronics Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Electronics Mart
The main advantage of trading using opposite Cantabil Retail and Electronics Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Electronics 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 Electronics Mart will offset losses from the drop in Electronics Mart's long position.| Cantabil Retail vs. Reliance Industries Limited | Cantabil Retail vs. HDFC Bank Limited | Cantabil Retail vs. Bharti Airtel Limited | Cantabil Retail vs. Power Finance |
| Electronics Mart vs. Kingfa Science Technology | Electronics Mart vs. Rico Auto Industries | Electronics Mart vs. GACM Technologies Limited | Electronics Mart vs. COSMO FIRST 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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