Correlation Between Cantabil Retail and Lakshmi Finance
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By analyzing existing cross correlation between Cantabil Retail India and Lakshmi Finance Industrial, you can compare the effects of market volatilities on Cantabil Retail and Lakshmi Finance 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 Lakshmi Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Lakshmi Finance.
Diversification Opportunities for Cantabil Retail and Lakshmi Finance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantabil and Lakshmi is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Lakshmi Finance Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakshmi Finance Indu 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 Lakshmi Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakshmi Finance Indu has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Lakshmi Finance go up and down completely randomly.
Pair Corralation between Cantabil Retail and Lakshmi Finance
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 4.77 times more return on investment than Lakshmi Finance. However, Cantabil Retail is 4.77 times more volatile than Lakshmi Finance Industrial. It trades about 0.04 of its potential returns per unit of risk. Lakshmi Finance Industrial is currently generating about 0.06 per unit of risk. If you would invest 23,549 in Cantabil Retail India on October 15, 2024 and sell it today you would earn a total of 5,931 from holding Cantabil Retail India or generate 25.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantabil Retail India vs. Lakshmi Finance Industrial
Performance |
| Timeline |
| Cantabil Retail India |
| Lakshmi Finance Indu |
Cantabil Retail and Lakshmi Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Lakshmi Finance
The main advantage of trading using opposite Cantabil Retail and Lakshmi Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Lakshmi Finance 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 Lakshmi Finance will offset losses from the drop in Lakshmi Finance's long position.| Cantabil Retail vs. CREDITACCESS GRAMEEN LIMITED | Cantabil Retail vs. Ankit Metal Power | Cantabil Retail vs. Rajnandini Metal Limited | Cantabil Retail vs. Golden Tobacco Limited |
| Lakshmi Finance vs. Rajnandini Metal Limited | Lakshmi Finance vs. LLOYDS METALS AND | Lakshmi Finance vs. Spencers Retail Limited | Lakshmi Finance vs. Rainbow Childrens Medicare |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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