Correlation Between Compucom Software and City Union
Specify exactly 2 symbols:
By analyzing existing cross correlation between Compucom Software Limited and City Union Bank, you can compare the effects of market volatilities on Compucom Software 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 Compucom Software with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compucom Software and City Union.
Diversification Opportunities for Compucom Software and City Union
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compucom and City is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Compucom Software 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 Compucom Software 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 Compucom Software 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 Compucom Software i.e., Compucom Software and City Union go up and down completely randomly.
Pair Corralation between Compucom Software and City Union
Assuming the 90 days trading horizon Compucom Software Limited is expected to under-perform the City Union. In addition to that, Compucom Software is 1.75 times more volatile than City Union Bank. It trades about -0.04 of its total potential returns per unit of risk. City Union Bank is currently generating about 0.03 per unit of volatility. If you would invest 16,969 in City Union Bank on August 28, 2024 and sell it today you would earn a total of 411.00 from holding City Union Bank or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Compucom Software Limited vs. City Union Bank
Performance |
| Timeline |
| Compucom Software |
| City Union Bank |
Compucom Software and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compucom Software and City Union
The main advantage of trading using opposite Compucom Software and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compucom Software 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.The idea behind Compucom Software Limited and City Union Bank 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.
| City Union vs. MRF Limited | City Union vs. JSW Holdings Limited | City Union vs. Maharashtra Scooters Limited | City Union vs. Nalwa Sons Investments |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |