Correlation Between LTIMindtree and Cantabil Retail
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By analyzing existing cross correlation between LTIMindtree Limited and Cantabil Retail India, you can compare the effects of market volatilities on LTIMindtree 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 LTIMindtree with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of LTIMindtree and Cantabil Retail.
Diversification Opportunities for LTIMindtree and Cantabil Retail
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between LTIMindtree and Cantabil is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding LTIMindtree 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 LTIMindtree 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 LTIMindtree 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 LTIMindtree i.e., LTIMindtree and Cantabil Retail go up and down completely randomly.
Pair Corralation between LTIMindtree and Cantabil Retail
Assuming the 90 days trading horizon LTIMindtree Limited is expected to generate 0.55 times more return on investment than Cantabil Retail. However, LTIMindtree Limited is 1.82 times less risky than Cantabil Retail. It trades about 0.06 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.02 per unit of risk. If you would invest 572,570 in LTIMindtree Limited on October 25, 2024 and sell it today you would earn a total of 12,420 from holding LTIMindtree Limited or generate 2.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
LTIMindtree Limited vs. Cantabil Retail India
Performance |
Timeline |
LTIMindtree Limited |
Cantabil Retail India |
LTIMindtree and Cantabil Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LTIMindtree and Cantabil Retail
The main advantage of trading using opposite LTIMindtree and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LTIMindtree 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.LTIMindtree vs. One 97 Communications | LTIMindtree vs. HDFC Asset Management | LTIMindtree vs. Som Distilleries Breweries | LTIMindtree vs. Man Infraconstruction Limited |
Cantabil Retail vs. Sapphire Foods India | Cantabil Retail vs. Mrs Bectors Food | Cantabil Retail vs. Som Distilleries Breweries | Cantabil Retail vs. Patanjali Foods 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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