Correlation Between Patanjali Foods and Hathway Cable

Can any of the company-specific risk be diversified away by investing in both Patanjali Foods and Hathway Cable 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 Patanjali Foods and Hathway Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Patanjali Foods Limited and Hathway Cable Datacom, you can compare the effects of market volatilities on Patanjali Foods and Hathway Cable 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 Patanjali Foods with a short position of Hathway Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patanjali Foods and Hathway Cable.

Diversification Opportunities for Patanjali Foods and Hathway Cable

-0.42

Correlation Coefficient

Patanjali Foods  Hathway Cable

Very good diversification

The 3 months correlation between Patanjali and Hathway is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Patanjali Foods Limited and Hathway Cable Datacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hathway Cable Datacom and Patanjali Foods 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 Patanjali Foods Limited are associated (or correlated) with Hathway Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hathway Cable Datacom has no effect on the direction of Patanjali Foods i.e., Patanjali Foods and Hathway Cable go up and down completely randomly.

Pair Corralation between Patanjali Foods and Hathway Cable

Assuming the 90 days trading horizon Patanjali Foods Limited is expected to under-perform the Hathway Cable. But the stock apears to be less risky and, when comparing its historical volatility, Patanjali Foods Limited is 1.12 times less risky than Hathway Cable. The stock trades about -0.01 of its potential returns per unit of risk. The Hathway Cable Datacom is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,403  in Hathway Cable Datacom on April 25, 2025 and sell it today you would earn a total of  162.00  from holding Hathway Cable Datacom or generate 11.55% return on investment over 90 days.

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

Patanjali Foods Limited  vs.  Hathway Cable Datacom

Patanjali Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Patanjali Foods Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Patanjali Foods is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Hathway Cable Datacom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hathway Cable Datacom are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Hathway Cable may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Patanjali Foods and Hathway Cable

The main advantage of trading using opposite Patanjali Foods and Hathway Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patanjali Foods position performs unexpectedly, Hathway Cable 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 Hathway Cable will offset losses from the drop in Hathway Cable's long position.

The idea behind Patanjali Foods Limited and Hathway Cable Datacom 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.