Correlation Between ILFS Investment and Cantabil Retail
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By analyzing existing cross correlation between ILFS Investment Managers and Cantabil Retail India, you can compare the effects of market volatilities on ILFS Investment 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 ILFS Investment with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ILFS Investment and Cantabil Retail.
Diversification Opportunities for ILFS Investment and Cantabil Retail
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ILFS and Cantabil is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ILFS Investment Managers 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 ILFS Investment 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 ILFS Investment Managers 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 ILFS Investment i.e., ILFS Investment and Cantabil Retail go up and down completely randomly.
Pair Corralation between ILFS Investment and Cantabil Retail
Assuming the 90 days trading horizon ILFS Investment is expected to generate 7.44 times less return on investment than Cantabil Retail. But when comparing it to its historical volatility, ILFS Investment Managers is 1.03 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 0.33 of returns per unit of risk over similar time horizon. If you would invest 22,722 in Cantabil Retail India on September 25, 2024 and sell it today you would earn a total of 4,030 from holding Cantabil Retail India or generate 17.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ILFS Investment Managers vs. Cantabil Retail India
Performance |
Timeline |
ILFS Investment Managers |
Cantabil Retail India |
ILFS Investment and Cantabil Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ILFS Investment and Cantabil Retail
The main advantage of trading using opposite ILFS Investment and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ILFS Investment 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.ILFS Investment vs. UCO Bank | ILFS Investment vs. DCB Bank Limited | ILFS Investment vs. CSB Bank Limited | ILFS Investment vs. Central Bank of |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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