Correlation Between Iris Clothings and Cantabil Retail
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By analyzing existing cross correlation between Iris Clothings Limited and Cantabil Retail India, you can compare the effects of market volatilities on Iris Clothings 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 Iris Clothings with a short position of Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iris Clothings and Cantabil Retail.
Diversification Opportunities for Iris Clothings and Cantabil Retail
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Iris and Cantabil is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Iris Clothings Limited 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 Iris Clothings 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 Iris Clothings Limited 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 Iris Clothings i.e., Iris Clothings and Cantabil Retail go up and down completely randomly.
Pair Corralation between Iris Clothings and Cantabil Retail
Assuming the 90 days trading horizon Iris Clothings Limited is expected to under-perform the Cantabil Retail. But the stock apears to be less risky and, when comparing its historical volatility, Iris Clothings Limited is 1.2 times less risky than Cantabil Retail. The stock trades about -0.12 of its potential returns per unit of risk. The Cantabil Retail India is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,777 in Cantabil Retail India on September 25, 2024 and sell it today you would earn a total of 1,975 from holding Cantabil Retail India or generate 7.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Iris Clothings Limited vs. Cantabil Retail India
Performance |
Timeline |
Iris Clothings |
Cantabil Retail India |
Iris Clothings and Cantabil Retail Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iris Clothings and Cantabil Retail
The main advantage of trading using opposite Iris Clothings and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iris Clothings 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.Iris Clothings vs. Kaushalya Infrastructure Development | Iris Clothings vs. Tarapur Transformers Limited | Iris Clothings vs. Kingfa Science Technology | Iris Clothings vs. Rico Auto Industries |
Cantabil Retail vs. Cholamandalam Investment and | Cantabil Retail vs. Melstar Information Technologies | Cantabil Retail vs. JGCHEMICALS LIMITED | Cantabil Retail vs. Tata Chemicals Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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