Correlation Between Osia Hyper and Cantabil Retail

Can any of the company-specific risk be diversified away by investing in both Osia Hyper and Cantabil Retail 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 Osia Hyper and Cantabil Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Osia Hyper and Cantabil Retail

0.51

Correlation Coefficient

Osia Hyper  Cantabil Retail

Very weak diversification

The 3 months correlation between Osia and Cantabil is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Osia Hyper Retail 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 Osia Hyper 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 Osia Hyper Retail 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 Osia Hyper i.e., Osia Hyper and Cantabil Retail go up and down completely randomly.

Pair Corralation between Osia Hyper and Cantabil Retail

Assuming the 90 days trading horizon Osia Hyper Retail is expected to generate 1.22 times more return on investment than Cantabil Retail. However, Osia Hyper is 1.22 times more volatile than Cantabil Retail India. It trades about -0.01 of its potential returns per unit of risk. Cantabil Retail India is currently generating about -0.05 per unit of risk. If you would invest  3,443  in Osia Hyper Retail on August 31, 2024 and sell it today you would lose (130.00) from holding Osia Hyper Retail or give up 3.78% of portfolio value over 90 days.

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

Osia Hyper Retail  vs.  Cantabil Retail India

Osia Hyper Retail

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osia Hyper Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Osia Hyper is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Cantabil Retail India

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cantabil Retail India has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Osia Hyper and Cantabil Retail

The main advantage of trading using opposite Osia Hyper and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osia Hyper 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.

The idea behind Osia Hyper Retail and Cantabil Retail India 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.