Correlation Between Cantabil Retail and MEDI ASSIST

Can any of the company-specific risk be diversified away by investing in both Cantabil Retail and MEDI ASSIST 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 MEDI ASSIST 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 MEDI ASSIST HEALTHCARE, you can compare the effects of market volatilities on Cantabil Retail and MEDI ASSIST 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 MEDI ASSIST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and MEDI ASSIST.

Diversification Opportunities for Cantabil Retail and MEDI ASSIST

-0.01

Correlation Coefficient

Cantabil Retail  MEDI ASSIST

Good diversification

The 3 months correlation between Cantabil and MEDI is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and MEDI ASSIST HEALTHCARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDI ASSIST HEALTHCARE 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 MEDI ASSIST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDI ASSIST HEALTHCARE has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and MEDI ASSIST go up and down completely randomly.

Pair Corralation between Cantabil Retail and MEDI ASSIST

Assuming the 90 days trading horizon Cantabil Retail is expected to generate 1.64 times less return on investment than MEDI ASSIST. In addition to that, Cantabil Retail is 1.29 times more volatile than MEDI ASSIST HEALTHCARE. It trades about 0.02 of its total potential returns per unit of risk. MEDI ASSIST HEALTHCARE is currently generating about 0.04 per unit of volatility. If you would invest  56,985  in MEDI ASSIST HEALTHCARE on October 25, 2024 and sell it today you would earn a total of  740.00  from holding MEDI ASSIST HEALTHCARE or generate 1.3% 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.  MEDI ASSIST HEALTHCARE

Cantabil Retail India

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantabil Retail India are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental drivers, Cantabil Retail demonstrated solid returns over the last few months and may actually be approaching a breakup point.

MEDI ASSIST HEALTHCARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEDI ASSIST HEALTHCARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, MEDI ASSIST is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantabil Retail and MEDI ASSIST

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

The idea behind Cantabil Retail India and MEDI ASSIST HEALTHCARE 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.