Correlation Between Max Financial and Cantabil Retail
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By analyzing existing cross correlation between Max Financial Services and Cantabil Retail India, you can compare the effects of market volatilities on Max Financial 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 Max Financial with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and Cantabil Retail.
Diversification Opportunities for Max Financial and Cantabil Retail
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Max and Cantabil is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services 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 Max Financial 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 Max Financial Services 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 Max Financial i.e., Max Financial and Cantabil Retail go up and down completely randomly.
Pair Corralation between Max Financial and Cantabil Retail
Assuming the 90 days trading horizon Max Financial Services is expected to generate 0.77 times more return on investment than Cantabil Retail. However, Max Financial Services is 1.29 times less risky than Cantabil Retail. It trades about 0.05 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 99,570 in Max Financial Services on September 27, 2024 and sell it today you would earn a total of 10,820 from holding Max Financial Services or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Max Financial Services vs. Cantabil Retail India
Performance |
| Timeline |
| Max Financial Services |
| Cantabil Retail India |
Max Financial and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and Cantabil Retail
The main advantage of trading using opposite Max Financial and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial 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.| Max Financial vs. Reliance Industries Limited | Max Financial vs. Oil Natural Gas | Max Financial vs. ICICI Bank Limited | Max Financial vs. Bharti Airtel Limited |
| Cantabil Retail vs. Kaushalya Infrastructure Development | Cantabil Retail vs. Tarapur Transformers Limited | Cantabil Retail vs. Kingfa Science Technology | Cantabil Retail vs. Rico Auto Industries |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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