Correlation Between CSB Bank and Karur Vysya
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By analyzing existing cross correlation between CSB Bank Limited and Karur Vysya Bank, you can compare the effects of market volatilities on CSB Bank and Karur Vysya 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 Karur Vysya. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Karur Vysya.
Diversification Opportunities for CSB Bank and Karur Vysya
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSB and Karur is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Karur Vysya Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karur Vysya Bank 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 Karur Vysya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karur Vysya Bank has no effect on the direction of CSB Bank i.e., CSB Bank and Karur Vysya go up and down completely randomly.
Pair Corralation between CSB Bank and Karur Vysya
Assuming the 90 days trading horizon CSB Bank Limited is expected to generate 1.25 times more return on investment than Karur Vysya. However, CSB Bank is 1.25 times more volatile than Karur Vysya Bank. It trades about 0.37 of its potential returns per unit of risk. Karur Vysya Bank is currently generating about 0.14 per unit of risk. If you would invest 29,935 in CSB Bank Limited on January 24, 2025 and sell it today you would earn a total of 6,365 from holding CSB Bank Limited or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSB Bank Limited vs. Karur Vysya Bank
Performance |
| Timeline |
| CSB Bank Limited |
| Karur Vysya Bank |
CSB Bank and Karur Vysya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and Karur Vysya
The main advantage of trading using opposite CSB Bank and Karur Vysya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Karur Vysya 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 Karur Vysya will offset losses from the drop in Karur Vysya's long position.| CSB Bank vs. UFO Moviez India | CSB Bank vs. Hindware Home Innovation | CSB Bank vs. Allied Blenders Distillers | CSB Bank vs. Praxis Home Retail |
| Karur Vysya vs. Consolidated Construction Consortium | Karur Vysya vs. Indo Borax Chemicals | Karur Vysya vs. Kingfa Science Technology | Karur Vysya vs. Alkali Metals 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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