Correlation Between Cantabil Retail and HT Media

Can any of the company-specific risk be diversified away by investing in both Cantabil Retail and HT Media at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cantabil Retail and HT Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cantabil Retail India and HT Media Limited, you can compare the effects of market volatilities on Cantabil Retail and HT Media 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 Cantabil Retail with a short position of HT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and HT Media.

Diversification Opportunities for Cantabil Retail and HT Media

-0.3

Correlation Coefficient

Cantabil Retail  HT Media

Very good diversification

The 3 months correlation between Cantabil and HTMEDIA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and HT Media Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HT Media Limited and Cantabil Retail 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 Cantabil Retail India are associated (or correlated) with HT Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HT Media Limited has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and HT Media go up and down completely randomly.

Pair Corralation between Cantabil Retail and HT Media

Assuming the 90 days trading horizon Cantabil Retail India is expected to generate 1.35 times more return on investment than HT Media. However, Cantabil Retail is 1.35 times more volatile than HT Media Limited. It trades about 0.18 of its potential returns per unit of risk. HT Media Limited is currently generating about -0.25 per unit of risk. If you would invest  26,735  in Cantabil Retail India on October 15, 2024 and sell it today you would earn a total of  2,745  from holding Cantabil Retail India or generate 10.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cantabil Retail India  vs.  HT Media Limited

Cantabil Retail India

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantabil Retail India are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental drivers, Cantabil Retail demonstrated solid returns over the last few months and may actually be approaching a breakup point.

HT Media Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HT Media Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cantabil Retail and HT Media

The main advantage of trading using opposite Cantabil Retail and HT Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, HT Media 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 HT Media will offset losses from the drop in HT Media's long position.

The idea behind Cantabil Retail India and HT Media Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.