Correlation Between Cantabil Retail and Persistent Systems
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By analyzing existing cross correlation between Cantabil Retail India and Persistent Systems Limited, you can compare the effects of market volatilities on Cantabil Retail and Persistent Systems 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 Persistent Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantabil Retail and Persistent Systems.
Diversification Opportunities for Cantabil Retail and Persistent Systems
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cantabil and Persistent is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cantabil Retail India and Persistent Systems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persistent Systems 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 Persistent Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persistent Systems has no effect on the direction of Cantabil Retail i.e., Cantabil Retail and Persistent Systems go up and down completely randomly.
Pair Corralation between Cantabil Retail and Persistent Systems
Assuming the 90 days trading horizon Cantabil Retail India is expected to under-perform the Persistent Systems. But the stock apears to be less risky and, when comparing its historical volatility, Cantabil Retail India is 1.07 times less risky than Persistent Systems. The stock trades about -0.02 of its potential returns per unit of risk. The Persistent Systems Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 525,950 in Persistent Systems Limited on September 5, 2024 and sell it today you would earn a total of 78,180 from holding Persistent Systems Limited or generate 14.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Cantabil Retail India vs. Persistent Systems Limited
Performance |
Timeline |
Cantabil Retail India |
Persistent Systems |
Cantabil Retail and Persistent Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cantabil Retail and Persistent Systems
The main advantage of trading using opposite Cantabil Retail and Persistent Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantabil Retail position performs unexpectedly, Persistent Systems 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 Persistent Systems will offset losses from the drop in Persistent Systems' long position.Cantabil Retail vs. Kingfa Science Technology | Cantabil Retail vs. Rico Auto Industries | Cantabil Retail vs. GACM Technologies Limited | Cantabil Retail vs. COSMO FIRST LIMITED |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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