Correlation Between Cantabil Retail and Kamat Hotels
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By analyzing existing cross correlation between Cantabil Retail India and Kamat Hotels Limited, you can compare the effects of market volatilities on Cantabil Retail and Kamat Hotels 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 Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Kamat Hotels.
Diversification Opportunities for Cantabil Retail and Kamat Hotels
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cantabil and Kamat is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels 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 Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Kamat Hotels go up and down completely randomly.
Pair Corralation between Cantabil Retail and Kamat Hotels
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 1.2 times more return on investment than Kamat Hotels. However, Cantabil Retail is 1.2 times more volatile than Kamat Hotels Limited. It trades about 0.32 of its potential returns per unit of risk. Kamat Hotels Limited is currently generating about -0.11 per unit of risk. If you would invest 24,529 in Cantabil Retail India on October 11, 2024 and sell it today you would earn a total of 5,556 from holding Cantabil Retail India or generate 22.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cantabil Retail India vs. Kamat Hotels Limited
Performance |
| Timeline |
| Cantabil Retail India |
| Kamat Hotels Limited |
Cantabil Retail and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Kamat Hotels
The main advantage of trading using opposite Cantabil Retail and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Kamat Hotels 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| Cantabil Retail vs. Infomedia Press Limited | Cantabil Retail vs. Mangalore Chemicals Fertilizers | Cantabil Retail vs. Newgen Software Technologies | Cantabil Retail vs. Vishnu Chemicals Limited |
| Kamat Hotels vs. Heritage Foods Limited | Kamat Hotels vs. Spencers Retail Limited | Kamat Hotels vs. Silgo Retail Limited | Kamat Hotels vs. LT Foods 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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