Correlation Between Cantabil Retail and Kohinoor Foods
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By analyzing existing cross correlation between Cantabil Retail India and Kohinoor Foods Limited, you can compare the effects of market volatilities on Cantabil Retail and Kohinoor Foods 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 Kohinoor Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Kohinoor Foods.
Diversification Opportunities for Cantabil Retail and Kohinoor Foods
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cantabil and Kohinoor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Kohinoor Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Foods 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 Kohinoor Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Foods has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Kohinoor Foods go up and down completely randomly.
Pair Corralation between Cantabil Retail and Kohinoor Foods
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 0.96 times more return on investment than Kohinoor Foods. However, Cantabil Retail India is 1.04 times less risky than Kohinoor Foods. It trades about 0.02 of its potential returns per unit of risk. Kohinoor Foods Limited is currently generating about -0.02 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantabil Retail India vs. Kohinoor Foods Limited
Performance |
| Timeline |
| Cantabil Retail India |
| Kohinoor Foods |
Cantabil Retail and Kohinoor Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Kohinoor Foods
The main advantage of trading using opposite Cantabil Retail and Kohinoor Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Kohinoor Foods 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 Kohinoor Foods will offset losses from the drop in Kohinoor Foods' long position.| Cantabil Retail vs. S P Apparels | Cantabil Retail vs. PYRAMID TECHNOPLAST ORD | Cantabil Retail vs. Shigan Quantum Tech | Cantabil Retail vs. AVALON TECHNOLOGIES LTD |
| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. Tata Consultancy Services | Kohinoor Foods vs. HDFC Bank Limited | Kohinoor Foods vs. Bharti Airtel 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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