Correlation Between Cantabil Retail and JGCHEMICALS
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By analyzing existing cross correlation between Cantabil Retail India and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Cantabil Retail and JGCHEMICALS 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 JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and JGCHEMICALS.
Diversification Opportunities for Cantabil Retail and JGCHEMICALS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantabil and JGCHEMICALS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS 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 JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Cantabil Retail and JGCHEMICALS
Assuming the 90 days trading horizon Cantabil Retail is expected to generate 19.64 times less return on investment than JGCHEMICALS. But when comparing it to its historical volatility, Cantabil Retail India is 2.85 times less risky than JGCHEMICALS. It trades about 0.02 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 36,820 in JGCHEMICALS LIMITED on August 25, 2024 and sell it today you would earn a total of 6,355 from holding JGCHEMICALS LIMITED or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cantabil Retail India vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Cantabil Retail India |
| JGCHEMICALS LIMITED |
Cantabil Retail and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and JGCHEMICALS
The main advantage of trading using opposite Cantabil Retail and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS'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 |
| JGCHEMICALS vs. LT Foods Limited | JGCHEMICALS vs. Agro Tech Foods | JGCHEMICALS vs. General Insurance | JGCHEMICALS vs. HDFC Life Insurance |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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