Correlation Between Gujarat Lease and Cantabil Retail
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By analyzing existing cross correlation between Gujarat Lease Financing and Cantabil Retail India, you can compare the effects of market volatilities on Gujarat Lease 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 Gujarat Lease with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Lease and Cantabil Retail.
Diversification Opportunities for Gujarat Lease and Cantabil Retail
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gujarat and Cantabil is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Lease Financing 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 Gujarat Lease 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 Gujarat Lease Financing 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 Gujarat Lease i.e., Gujarat Lease and Cantabil Retail go up and down completely randomly.
Pair Corralation between Gujarat Lease and Cantabil Retail
Assuming the 90 days trading horizon Gujarat Lease Financing is expected to generate 1.14 times more return on investment than Cantabil Retail. However, Gujarat Lease is 1.14 times more volatile than Cantabil Retail India. It trades about 0.12 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.03 per unit of risk. If you would invest 295.00 in Gujarat Lease Financing on September 12, 2024 and sell it today you would earn a total of 572.00 from holding Gujarat Lease Financing or generate 193.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Gujarat Lease Financing vs. Cantabil Retail India
Performance |
| Timeline |
| Gujarat Lease Financing |
| Cantabil Retail India |
Gujarat Lease and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Lease and Cantabil Retail
The main advantage of trading using opposite Gujarat Lease and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Lease 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.| Gujarat Lease vs. Shyam Metalics and | Gujarat Lease vs. Sintex Plastics Technology | Gujarat Lease vs. LLOYDS METALS AND | Gujarat Lease vs. Embassy Office Parks |
| Cantabil Retail vs. Hemisphere Properties India | Cantabil Retail vs. Indo Borax Chemicals | Cantabil Retail vs. Kingfa Science Technology | Cantabil Retail vs. Alkali Metals Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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