Correlation Between Laxmi Organic and Cantabil Retail
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By analyzing existing cross correlation between Laxmi Organic Industries and Cantabil Retail India, you can compare the effects of market volatilities on Laxmi Organic 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 Laxmi Organic with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laxmi Organic and Cantabil Retail.
Diversification Opportunities for Laxmi Organic and Cantabil Retail
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Laxmi and Cantabil is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Laxmi Organic Industries 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 Laxmi Organic 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 Laxmi Organic Industries 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 Laxmi Organic i.e., Laxmi Organic and Cantabil Retail go up and down completely randomly.
Pair Corralation between Laxmi Organic and Cantabil Retail
Assuming the 90 days trading horizon Laxmi Organic Industries is expected to under-perform the Cantabil Retail. But the stock apears to be less risky and, when comparing its historical volatility, Laxmi Organic Industries is 1.35 times less risky than Cantabil Retail. The stock trades about -0.19 of its potential returns per unit of risk. The Cantabil Retail India is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 28,750 in Cantabil Retail India on November 2, 2024 and sell it today you would lose (910.00) from holding Cantabil Retail India or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laxmi Organic Industries vs. Cantabil Retail India
Performance |
| Timeline |
| Laxmi Organic Industries |
| Cantabil Retail India |
Laxmi Organic and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laxmi Organic and Cantabil Retail
The main advantage of trading using opposite Laxmi Organic and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laxmi Organic 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.| Laxmi Organic vs. NMDC Limited | Laxmi Organic vs. Steel Authority of | Laxmi Organic vs. Embassy Office Parks | Laxmi Organic vs. Jai Balaji Industries |
| Cantabil Retail vs. UFO Moviez India | Cantabil Retail vs. Indraprastha Medical | Cantabil Retail vs. LLOYDS METALS AND | Cantabil Retail vs. Manaksia Coated Metals |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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