Correlation Between Cantabil Retail and Steel Authority
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By analyzing existing cross correlation between Cantabil Retail India and Steel Authority of, you can compare the effects of market volatilities on Cantabil Retail and Steel Authority 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 Steel Authority. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Steel Authority.
Diversification Opportunities for Cantabil Retail and Steel Authority
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cantabil and Steel is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Steel Authority of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Authority 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 Steel Authority. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Authority has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Steel Authority go up and down completely randomly.
Pair Corralation between Cantabil Retail and Steel Authority
Assuming the 90 days trading horizon Cantabil Retail India is expected to under-perform the Steel Authority. But the stock apears to be less risky and, when comparing its historical volatility, Cantabil Retail India is 1.75 times less risky than Steel Authority. The stock trades about -0.03 of its potential returns per unit of risk. The Steel Authority of is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11,467 in Steel Authority of on August 29, 2024 and sell it today you would earn a total of 116.00 from holding Steel Authority of or generate 1.01% 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. Steel Authority of
Performance |
| Timeline |
| Cantabil Retail India |
| Steel Authority |
Cantabil Retail and Steel Authority Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantabil Retail and Steel Authority
The main advantage of trading using opposite Cantabil Retail and Steel Authority positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Steel Authority 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 Steel Authority will offset losses from the drop in Steel Authority's long position.| Cantabil Retail vs. DMCC SPECIALITY CHEMICALS | Cantabil Retail vs. V Mart Retail Limited | Cantabil Retail vs. Paramount Communications Limited | Cantabil Retail vs. Baazar Style Retail |
| Steel Authority vs. Embassy Office Parks | Steel Authority vs. Gujarat Narmada Valley | Steel Authority vs. Gujarat Alkalies and | Steel Authority vs. JTL Industries |
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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