Correlation Between Abbott India and City Union
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By analyzing existing cross correlation between Abbott India Limited and City Union Bank, you can compare the effects of market volatilities on Abbott India 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 Abbott India with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abbott India and City Union.
Diversification Opportunities for Abbott India and City Union
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Abbott and City is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Abbott India 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 Abbott 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 Abbott India 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 Abbott India i.e., Abbott India and City Union go up and down completely randomly.
Pair Corralation between Abbott India and City Union
Assuming the 90 days trading horizon Abbott India Limited is expected to generate 0.74 times more return on investment than City Union. However, Abbott India Limited is 1.35 times less risky than City Union. It trades about 0.07 of its potential returns per unit of risk. City Union Bank is currently generating about 0.03 per unit of risk. If you would invest 2,257,616 in Abbott India Limited on September 14, 2024 and sell it today you would earn a total of 617,214 from holding Abbott India Limited or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Abbott India Limited vs. City Union Bank
Performance |
| Timeline |
| Abbott India Limited |
| City Union Bank |
Abbott India and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abbott India and City Union
The main advantage of trading using opposite Abbott India and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abbott India 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.| Abbott India vs. Akme Fintrade India | Abbott India vs. Praxis Home Retail | Abbott India vs. Dhunseri Investments Limited | Abbott India vs. SIL Investments Limited |
| City Union vs. Reliance Industries Limited | City Union vs. State Bank of | City Union vs. Oil Natural Gas | City Union vs. ICICI Bank 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 CEOs Directory module to screen CEOs from public companies around the world.
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