Correlation Between Steelcast and City Union
Specify exactly 2 symbols:
By analyzing existing cross correlation between Steelcast Limited and City Union Bank, you can compare the effects of market volatilities on Steelcast 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 Steelcast with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and City Union.
Diversification Opportunities for Steelcast and City Union
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Steelcast and City is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited 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 Steelcast 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 Steelcast Limited 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 Steelcast i.e., Steelcast and City Union go up and down completely randomly.
Pair Corralation between Steelcast and City Union
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 1.27 times more return on investment than City Union. However, Steelcast is 1.27 times more volatile than City Union Bank. It trades about 0.1 of its potential returns per unit of risk. City Union Bank is currently generating about 0.05 per unit of risk. If you would invest 75,978 in Steelcast Limited on September 25, 2024 and sell it today you would earn a total of 11,617 from holding Steelcast Limited or generate 15.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
Steelcast Limited vs. City Union Bank
Performance |
Timeline |
Steelcast Limited |
City Union Bank |
Steelcast and City Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Steelcast and City Union
The main advantage of trading using opposite Steelcast and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast 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.Steelcast vs. Tata Communications Limited | Steelcast vs. Yatra Online Limited | Steelcast vs. Kohinoor Foods Limited | Steelcast vs. Vertoz Advertising Limited |
City Union vs. Kingfa Science Technology | City Union vs. Rico Auto Industries | City Union vs. GACM Technologies Limited | City Union vs. COSMO FIRST 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |