Correlation Between Kewal Kiran and Cantabil Retail
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By analyzing existing cross correlation between Kewal Kiran Clothing and Cantabil Retail India, you can compare the effects of market volatilities on Kewal Kiran 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 Kewal Kiran with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kewal Kiran and Cantabil Retail.
Diversification Opportunities for Kewal Kiran and Cantabil Retail
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kewal and Cantabil is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kewal Kiran Clothing 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 Kewal Kiran 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 Kewal Kiran Clothing 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 Kewal Kiran i.e., Kewal Kiran and Cantabil Retail go up and down completely randomly.
Pair Corralation between Kewal Kiran and Cantabil Retail
Assuming the 90 days trading horizon Kewal Kiran is expected to generate 1.66 times less return on investment than Cantabil Retail. But when comparing it to its historical volatility, Kewal Kiran Clothing is 1.4 times less risky than Cantabil Retail. It trades about 0.03 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 18,561 in Cantabil Retail India on November 27, 2024 and sell it today you would earn a total of 7,694 from holding Cantabil Retail India or generate 41.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kewal Kiran Clothing vs. Cantabil Retail India
Performance |
| Timeline |
| Kewal Kiran Clothing |
| Cantabil Retail India |
Kewal Kiran and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kewal Kiran and Cantabil Retail
The main advantage of trading using opposite Kewal Kiran and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kewal Kiran 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.| Kewal Kiran vs. Megastar Foods Limited | Kewal Kiran vs. R S Software | Kewal Kiran vs. Computer Age Management | Kewal Kiran vs. Sintex Plastics Technology |
| Cantabil Retail vs. Tata Consultancy Services | Cantabil Retail vs. Quess Corp Limited | Cantabil Retail vs. Reliance Industries Limited | Cantabil Retail vs. Infosys 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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