Correlation Between Bajaj Hindusthan and Yes Bank
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By analyzing existing cross correlation between Bajaj Hindusthan Sugar and Yes Bank Limited, you can compare the effects of market volatilities on Bajaj Hindusthan and Yes Bank 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 Bajaj Hindusthan with a short position of Yes Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Hindusthan and Yes Bank.
Diversification Opportunities for Bajaj Hindusthan and Yes Bank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bajaj and Yes is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Hindusthan Sugar and Yes Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Bank Limited and Bajaj Hindusthan 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 Bajaj Hindusthan Sugar are associated (or correlated) with Yes Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Bank Limited has no effect on the direction of Bajaj Hindusthan i.e., Bajaj Hindusthan and Yes Bank go up and down completely randomly.
Pair Corralation between Bajaj Hindusthan and Yes Bank
Assuming the 90 days trading horizon Bajaj Hindusthan Sugar is expected to generate 1.37 times more return on investment than Yes Bank. However, Bajaj Hindusthan is 1.37 times more volatile than Yes Bank Limited. It trades about -0.05 of its potential returns per unit of risk. Yes Bank Limited is currently generating about -0.14 per unit of risk. If you would invest 3,110 in Bajaj Hindusthan Sugar on October 24, 2024 and sell it today you would lose (144.00) from holding Bajaj Hindusthan Sugar or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Hindusthan Sugar vs. Yes Bank Limited
Performance |
| Timeline |
| Bajaj Hindusthan Sugar |
| Yes Bank Limited |
Bajaj Hindusthan and Yes Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Hindusthan and Yes Bank
The main advantage of trading using opposite Bajaj Hindusthan and Yes Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Hindusthan position performs unexpectedly, Yes Bank 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 Yes Bank will offset losses from the drop in Yes Bank's long position.| Bajaj Hindusthan vs. Yes Bank Limited | Bajaj Hindusthan vs. Indian Oil | Bajaj Hindusthan vs. Kingfa Science Technology | Bajaj Hindusthan vs. Rico Auto Industries |
| Yes Bank vs. Reliance Industries Limited | Yes Bank vs. HDFC Bank Limited | Yes Bank vs. Kingfa Science Technology | Yes Bank vs. Rico Auto Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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