Correlation Between Network18 Media and Can Fin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Network18 Media Investments and Can Fin Homes, you can compare the effects of market volatilities on Network18 Media and Can Fin 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 Network18 Media with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network18 Media and Can Fin.
Diversification Opportunities for Network18 Media and Can Fin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Network18 and Can is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Network18 Media Investments and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and Network18 Media 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 Network18 Media Investments are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Network18 Media i.e., Network18 Media and Can Fin go up and down completely randomly.
Pair Corralation between Network18 Media and Can Fin
Assuming the 90 days trading horizon Network18 Media is expected to generate 2.72 times less return on investment than Can Fin. In addition to that, Network18 Media is 1.51 times more volatile than Can Fin Homes. It trades about 0.01 of its total potential returns per unit of risk. Can Fin Homes is currently generating about 0.04 per unit of volatility. If you would invest 75,554 in Can Fin Homes on September 3, 2024 and sell it today you would earn a total of 6,841 from holding Can Fin Homes or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.32% |
| Values | Daily Returns |
Network18 Media Investments vs. Can Fin Homes
Performance |
| Timeline |
| Network18 Media Inve |
| Can Fin Homes |
Network18 Media and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Network18 Media and Can Fin
The main advantage of trading using opposite Network18 Media and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network18 Media position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| Network18 Media vs. Shipping | Network18 Media vs. Indo Borax Chemicals | Network18 Media vs. Kingfa Science Technology | Network18 Media vs. Alkali Metals Limited |
| Can Fin vs. Reliance Industries Limited | Can Fin vs. Shipping | Can Fin vs. Indo Borax Chemicals | Can Fin vs. Kingfa Science Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |