Correlation Between MRF and Cantabil Retail
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By analyzing existing cross correlation between MRF Limited and Cantabil Retail India, you can compare the effects of market volatilities on MRF 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 MRF with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Cantabil Retail.
Diversification Opportunities for MRF and Cantabil Retail
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MRF and Cantabil is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MRF 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 MRF 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 MRF 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 MRF i.e., MRF and Cantabil Retail go up and down completely randomly.
Pair Corralation between MRF and Cantabil Retail
Assuming the 90 days trading horizon MRF Limited is expected to generate 1.0 times more return on investment than Cantabil Retail. However, MRF Limited is 1.0 times less risky than Cantabil Retail. It trades about 0.07 of its potential returns per unit of risk. Cantabil Retail India is currently generating about -0.01 per unit of risk. If you would invest 12,333,000 in MRF Limited on September 2, 2024 and sell it today you would earn a total of 192,100 from holding MRF Limited or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Cantabil Retail India
Performance |
| Timeline |
| MRF Limited |
| Cantabil Retail India |
MRF and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Cantabil Retail
The main advantage of trading using opposite MRF and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF 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.| MRF vs. Apollo Sindoori Hotels | MRF vs. Baazar Style Retail | MRF vs. Lemon Tree Hotels | MRF vs. Kamat Hotels Limited |
| Cantabil Retail vs. Motilal Oswal Financial | Cantabil Retail vs. Punjab National Bank | Cantabil Retail vs. Kavveri Telecom Products | Cantabil Retail vs. Ortel Communications 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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