Correlation Between Indian Oil and Cantabil Retail
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By analyzing existing cross correlation between Indian Oil and Cantabil Retail India, you can compare the effects of market volatilities on Indian Oil 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 Indian Oil with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and Cantabil Retail.
Diversification Opportunities for Indian Oil and Cantabil Retail
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indian and Cantabil is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil 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 Indian Oil 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 Indian Oil 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 Indian Oil i.e., Indian Oil and Cantabil Retail go up and down completely randomly.
Pair Corralation between Indian Oil and Cantabil Retail
Assuming the 90 days trading horizon Indian Oil is expected to under-perform the Cantabil Retail. But the stock apears to be less risky and, when comparing its historical volatility, Indian Oil is 1.24 times less risky than Cantabil Retail. The stock trades about -0.17 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 23,490 in Cantabil Retail India on September 12, 2024 and sell it today you would earn a total of 1,039 from holding Cantabil Retail India or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indian Oil vs. Cantabil Retail India
Performance |
| Timeline |
| Indian Oil |
| Cantabil Retail India |
Indian Oil and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indian Oil and Cantabil Retail
The main advantage of trading using opposite Indian Oil and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil 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.| Indian Oil vs. Kalyani Investment | Indian Oil vs. Praxis Home Retail | Indian Oil vs. The Investment Trust | Indian Oil vs. Nalwa Sons Investments |
| Cantabil Retail vs. KIOCL Limited | Cantabil Retail vs. Spentex Industries Limited | Cantabil Retail vs. Punjab Sind Bank | Cantabil Retail vs. Raj Rayon 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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