Correlation Between Indian Card and City Union
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By analyzing existing cross correlation between Indian Card Clothing and City Union Bank, you can compare the effects of market volatilities on Indian Card and City Union 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 Indian Card with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Card and City Union.
Diversification Opportunities for Indian Card and City Union
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indian and City is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Indian Card Clothing and City Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Union Bank and Indian Card 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 Indian Card Clothing are associated (or correlated) with City Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Union Bank has no effect on the direction of Indian Card i.e., Indian Card and City Union go up and down completely randomly.
Pair Corralation between Indian Card and City Union
Assuming the 90 days trading horizon Indian Card Clothing is expected to generate 4.01 times more return on investment than City Union. However, Indian Card is 4.01 times more volatile than City Union Bank. It trades about 0.26 of its potential returns per unit of risk. City Union Bank is currently generating about 0.02 per unit of risk. If you would invest 26,530 in Indian Card Clothing on September 25, 2024 and sell it today you would earn a total of 8,150 from holding Indian Card Clothing or generate 30.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Indian Card Clothing vs. City Union Bank
Performance |
Timeline |
Indian Card Clothing |
City Union Bank |
Indian Card and City Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indian Card and City Union
The main advantage of trading using opposite Indian Card and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Card position performs unexpectedly, City Union 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 City Union will offset losses from the drop in City Union's long position.Indian Card vs. Reliance Industries Limited | Indian Card vs. HDFC Bank Limited | Indian Card vs. Kingfa Science Technology | Indian Card vs. Rico Auto Industries |
City Union vs. SAL Steel Limited | City Union vs. Kalyani Steels Limited | City Union vs. Vraj Iron and | City Union vs. Steelcast 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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