Correlation Between Kothari Petrochemicals and Cantabil Retail
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By analyzing existing cross correlation between Kothari Petrochemicals Limited and Cantabil Retail India, you can compare the effects of market volatilities on Kothari Petrochemicals 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 Kothari Petrochemicals with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kothari Petrochemicals and Cantabil Retail.
Diversification Opportunities for Kothari Petrochemicals and Cantabil Retail
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kothari and Cantabil is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kothari Petrochemicals 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 Kothari Petrochemicals 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 Kothari Petrochemicals 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 Kothari Petrochemicals i.e., Kothari Petrochemicals and Cantabil Retail go up and down completely randomly.
Pair Corralation between Kothari Petrochemicals and Cantabil Retail
Assuming the 90 days trading horizon Kothari Petrochemicals is expected to generate 3.91 times less return on investment than Cantabil Retail. But when comparing it to its historical volatility, Kothari Petrochemicals Limited is 1.11 times less risky than Cantabil Retail. It trades about 0.08 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 22,625 in Cantabil Retail India on September 22, 2024 and sell it today you would earn a total of 3,627 from holding Cantabil Retail India or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kothari Petrochemicals Limited vs. Cantabil Retail India
Performance |
| Timeline |
| Kothari Petrochemicals |
| Cantabil Retail India |
Kothari Petrochemicals and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kothari Petrochemicals and Cantabil Retail
The main advantage of trading using opposite Kothari Petrochemicals and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kothari Petrochemicals 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.| Kothari Petrochemicals vs. Edelweiss Financial Services | Kothari Petrochemicals vs. UFO Moviez India | Kothari Petrochemicals vs. Allied Blenders Distillers | Kothari Petrochemicals vs. Central Bank of |
| Cantabil Retail vs. KIOCL Limited | Cantabil Retail vs. Spentex Industries Limited | Cantabil Retail vs. Punjab Sind Bank | Cantabil Retail vs. ITI 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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