Correlation Between CSB Bank and Avonmore Capital
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By analyzing existing cross correlation between CSB Bank Limited and Avonmore Capital Management, you can compare the effects of market volatilities on CSB Bank and Avonmore Capital 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 CSB Bank with a short position of Avonmore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Avonmore Capital.
Diversification Opportunities for CSB Bank and Avonmore Capital
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSB and Avonmore is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Avonmore Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avonmore Capital Man and CSB Bank 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 CSB Bank Limited are associated (or correlated) with Avonmore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avonmore Capital Man has no effect on the direction of CSB Bank i.e., CSB Bank and Avonmore Capital go up and down completely randomly.
Pair Corralation between CSB Bank and Avonmore Capital
Assuming the 90 days trading horizon CSB Bank is expected to generate 121.31 times less return on investment than Avonmore Capital. But when comparing it to its historical volatility, CSB Bank Limited is 48.88 times less risky than Avonmore Capital. It trades about 0.04 of its potential returns per unit of risk. Avonmore Capital Management is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 723.00 in Avonmore Capital Management on September 28, 2024 and sell it today you would earn a total of 952.00 from holding Avonmore Capital Management or generate 131.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CSB Bank Limited vs. Avonmore Capital Management
Performance |
| Timeline |
| CSB Bank Limited |
| Avonmore Capital Man |
CSB Bank and Avonmore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and Avonmore Capital
The main advantage of trading using opposite CSB Bank and Avonmore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Avonmore Capital 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 Avonmore Capital will offset losses from the drop in Avonmore Capital's long position.| CSB Bank vs. Kingfa Science Technology | CSB Bank vs. Rico Auto Industries | CSB Bank vs. GACM Technologies Limited | CSB Bank vs. COSMO FIRST LIMITED |
| Avonmore Capital vs. Edelweiss Financial Services | Avonmore Capital vs. CSB Bank Limited | Avonmore Capital vs. Allied Blenders Distillers | Avonmore Capital 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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