Correlation Between Electronics Mart and Cantabil Retail
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By analyzing existing cross correlation between Electronics Mart India and Cantabil Retail India, you can compare the effects of market volatilities on Electronics Mart and Cantabil Retail 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 Electronics Mart with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and Cantabil Retail.
Diversification Opportunities for Electronics Mart and Cantabil Retail
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Electronics and Cantabil is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and Cantabil Retail India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantabil Retail India and Electronics Mart 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 Electronics Mart India are associated (or correlated) with Cantabil Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantabil Retail India has no effect on the direction of Electronics Mart i.e., Electronics Mart and Cantabil Retail go up and down completely randomly.
Pair Corralation between Electronics Mart and Cantabil Retail
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the Cantabil Retail. In addition to that, Electronics Mart is 1.98 times more volatile than Cantabil Retail India. It trades about -0.15 of its total potential returns per unit of risk. Cantabil Retail India is currently generating about 0.02 per unit of volatility. 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 | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Electronics Mart India vs. Cantabil Retail India
Performance |
| Timeline |
| Electronics Mart India |
| Cantabil Retail India |
Electronics Mart and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and Cantabil Retail
The main advantage of trading using opposite Electronics Mart and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, Cantabil Retail 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 Cantabil Retail will offset losses from the drop in Cantabil Retail's long position.| Electronics Mart vs. Kingfa Science Technology | Electronics Mart vs. Rico Auto Industries | Electronics Mart vs. GACM Technologies Limited | Electronics Mart vs. COSMO FIRST LIMITED |
| Cantabil Retail vs. Reliance Industries Limited | Cantabil Retail vs. HDFC Bank Limited | Cantabil Retail vs. Bharti Airtel Limited | Cantabil Retail vs. Power Finance |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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