Correlation Between Kohinoor Foods and Cantabil Retail
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By analyzing existing cross correlation between Kohinoor Foods Limited and Cantabil Retail India, you can compare the effects of market volatilities on Kohinoor Foods 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 Kohinoor Foods with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and Cantabil Retail.
Diversification Opportunities for Kohinoor Foods and Cantabil Retail
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kohinoor and Cantabil is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods 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 Kohinoor Foods 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 Kohinoor Foods 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 Kohinoor Foods i.e., Kohinoor Foods and Cantabil Retail go up and down completely randomly.
Pair Corralation between Kohinoor Foods and Cantabil Retail
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to generate 2.0 times more return on investment than Cantabil Retail. However, Kohinoor Foods is 2.0 times more volatile than Cantabil Retail India. It trades about 0.02 of its potential returns per unit of risk. Cantabil Retail India is currently generating about -0.06 per unit of risk. If you would invest 4,113 in Kohinoor Foods Limited on August 29, 2024 and sell it today you would lose (17.00) from holding Kohinoor Foods Limited or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. Cantabil Retail India
Performance |
| Timeline |
| Kohinoor Foods |
| Cantabil Retail India |
Kohinoor Foods and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and Cantabil Retail
The main advantage of trading using opposite Kohinoor Foods and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods 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.| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. State Bank of | Kohinoor Foods vs. HDFC Bank Limited | Kohinoor Foods vs. Oil Natural Gas |
| Cantabil Retail vs. DMCC SPECIALITY CHEMICALS | Cantabil Retail vs. V Mart Retail Limited | Cantabil Retail vs. Paramount Communications Limited | Cantabil Retail vs. Baazar Style Retail |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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