Correlation Between Sportking India and Cantabil Retail

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

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

Diversification Opportunities for Sportking India and Cantabil Retail

0.5

Correlation Coefficient

Sportking India  Cantabil Retail

Very weak diversification

The 3 months correlation between Sportking and Cantabil is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sportking India 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 Sportking India 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 Sportking India 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 Sportking India i.e., Sportking India and Cantabil Retail go up and down completely randomly.

Pair Corralation between Sportking India and Cantabil Retail

Assuming the 90 days trading horizon Sportking India Limited is expected to generate 1.1 times more return on investment than Cantabil Retail. However, Sportking India is 1.1 times more volatile than Cantabil Retail India. It trades about 0.04 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.03 per unit of risk. If you would invest  7,709  in Sportking India Limited on May 7, 2025 and sell it today you would earn a total of  3,788  from holding Sportking India Limited or generate 49.14% return on investment over 90 days.

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

Sportking India Limited  vs.  Cantabil Retail India

Sportking India

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sportking India Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Sportking India is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Cantabil Retail India

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cantabil Retail India are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal fundamental drivers, Cantabil Retail demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sportking India and Cantabil Retail

The main advantage of trading using opposite Sportking India and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportking India 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 Sportking India Limited 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.