Correlation Between Cantabil Retail and NMDC Steel
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By analyzing existing cross correlation between Cantabil Retail India and NMDC Steel Limited, you can compare the effects of market volatilities on Cantabil Retail and NMDC Steel 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 NMDC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and NMDC Steel.
Diversification Opportunities for Cantabil Retail and NMDC Steel
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantabil and NMDC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and NMDC Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMDC Steel 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 NMDC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMDC Steel Limited has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and NMDC Steel go up and down completely randomly.
Pair Corralation between Cantabil Retail and NMDC Steel
Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 1.41 times more return on investment than NMDC Steel. However, Cantabil Retail is 1.41 times more volatile than NMDC Steel Limited. It trades about -0.1 of its potential returns per unit of risk. NMDC Steel Limited is currently generating about -0.22 per unit of risk. If you would invest 28,838 in Cantabil Retail India on October 30, 2024 and sell it today you would lose (2,158) from holding Cantabil Retail India or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantabil Retail India vs. NMDC Steel Limited
Performance |
| Timeline |
| Cantabil Retail India |
| NMDC Steel Limited |
Cantabil Retail and NMDC Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and NMDC Steel
The main advantage of trading using opposite Cantabil Retail and NMDC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, NMDC Steel 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 NMDC Steel will offset losses from the drop in NMDC Steel's long position.| Cantabil Retail vs. Indian Card Clothing | Cantabil Retail vs. Agro Tech Foods | Cantabil Retail vs. ROUTE MOBILE LIMITED | Cantabil Retail vs. Kohinoor Foods Limited |
| NMDC Steel vs. KNR Constructions Limited | NMDC Steel vs. Newgen Software Technologies | NMDC Steel vs. Syrma SGS Technology | NMDC Steel vs. Nucleus Software Exports |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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