Correlation Between Cantabil Retail and Life Insurance
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By analyzing existing cross correlation between Cantabil Retail India and Life Insurance, you can compare the effects of market volatilities on Cantabil Retail and Life Insurance 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 Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Life Insurance.
Diversification Opportunities for Cantabil Retail and Life Insurance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cantabil and Life is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance 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 Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Life Insurance go up and down completely randomly.
Pair Corralation between Cantabil Retail and Life Insurance
Assuming the 90 days trading horizon Cantabil Retail India is expected to under-perform the Life Insurance. In addition to that, Cantabil Retail is 1.12 times more volatile than Life Insurance. It trades about -0.01 of its total potential returns per unit of risk. Life Insurance is currently generating about 0.05 per unit of volatility. If you would invest 76,384 in Life Insurance on September 4, 2024 and sell it today you would earn a total of 20,591 from holding Life Insurance or generate 26.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Cantabil Retail India vs. Life Insurance
Performance |
| Timeline |
| Cantabil Retail India |
| Life Insurance |
Cantabil Retail and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Life Insurance
The main advantage of trading using opposite Cantabil Retail and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Life Insurance 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| Cantabil Retail vs. Vodafone Idea Limited | Cantabil Retail vs. Yes Bank Limited | Cantabil Retail vs. Indian Overseas Bank | Cantabil Retail vs. Indian Oil |
| Life Insurance vs. MRF Limited | Life Insurance vs. JSW Holdings Limited | Life Insurance vs. Maharashtra Scooters Limited | Life Insurance vs. Nalwa Sons Investments |
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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