Correlation Between Golden Tobacco and Cantabil Retail
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By analyzing existing cross correlation between Golden Tobacco Limited and Cantabil Retail India, you can compare the effects of market volatilities on Golden Tobacco 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 Golden Tobacco with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Cantabil Retail.
Diversification Opportunities for Golden Tobacco and Cantabil Retail
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Cantabil is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco Limited 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 Golden Tobacco 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 Golden Tobacco Limited 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 Golden Tobacco i.e., Golden Tobacco and Cantabil Retail go up and down completely randomly.
Pair Corralation between Golden Tobacco and Cantabil Retail
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to under-perform the Cantabil Retail. But the stock apears to be less risky and, when comparing its historical volatility, Golden Tobacco Limited is 7.51 times less risky than Cantabil Retail. The stock trades about -0.03 of its potential returns per unit of risk. The Cantabil Retail India is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 23,846 in Cantabil Retail India on October 16, 2024 and sell it today you would earn a total of 3,704 from holding Cantabil Retail India or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Golden Tobacco Limited vs. Cantabil Retail India
Performance |
| Timeline |
| Golden Tobacco |
| Cantabil Retail India |
Golden Tobacco and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and Cantabil Retail
The main advantage of trading using opposite Golden Tobacco and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco 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.| Golden Tobacco vs. Prakash Steelage Limited | Golden Tobacco vs. Coffee Day Enterprises | Golden Tobacco vs. Zenith Steel Pipes | Golden Tobacco vs. PB Fintech Limited |
| Cantabil Retail vs. CREDITACCESS GRAMEEN LIMITED | Cantabil Retail vs. Ankit Metal Power | Cantabil Retail vs. Rajnandini Metal Limited | Cantabil Retail vs. Golden Tobacco 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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