Correlation Between LT Foods and Cantabil Retail
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By analyzing existing cross correlation between LT Foods Limited and Cantabil Retail India, you can compare the effects of market volatilities on LT 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 LT Foods with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and Cantabil Retail.
Diversification Opportunities for LT Foods and Cantabil Retail
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LTFOODS and Cantabil is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding LT 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 LT 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 LT 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 LT Foods i.e., LT Foods and Cantabil Retail go up and down completely randomly.
Pair Corralation between LT Foods and Cantabil Retail
Assuming the 90 days trading horizon LT Foods Limited is expected to under-perform the Cantabil Retail. In addition to that, LT Foods is 1.71 times more volatile than Cantabil Retail India. It trades about -0.04 of its total potential returns per unit of risk. Cantabil Retail India is currently generating about -0.03 per unit of volatility. If you would invest 22,979 in Cantabil Retail India on August 28, 2024 and sell it today you would lose (207.00) from holding Cantabil Retail India or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LT Foods Limited vs. Cantabil Retail India
Performance |
| Timeline |
| LT Foods Limited |
| Cantabil Retail India |
LT Foods and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and Cantabil Retail
The main advantage of trading using opposite LT Foods and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT 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.| LT Foods vs. SINCLAIRS HOTELS ORD | LT Foods vs. Dharani SugarsChemicals Limited | LT Foods vs. Royal Orchid Hotels | LT Foods vs. Sukhjit Starch Chemicals |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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