Correlation Between City Union and ADF Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between City Union Bank and ADF Foods Limited, you can compare the effects of market volatilities on City Union and ADF Foods 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 City Union with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and ADF Foods.
Diversification Opportunities for City Union and ADF Foods
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and ADF is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and City Union 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 City Union Bank are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of City Union i.e., City Union and ADF Foods go up and down completely randomly.
Pair Corralation between City Union and ADF Foods
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.58 times more return on investment than ADF Foods. However, City Union Bank is 1.72 times less risky than ADF Foods. It trades about -0.02 of its potential returns per unit of risk. ADF Foods Limited is currently generating about -0.11 per unit of risk. If you would invest 17,544 in City Union Bank on November 4, 2024 and sell it today you would lose (172.00) from holding City Union Bank or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Union Bank vs. ADF Foods Limited
Performance |
| Timeline |
| City Union Bank |
| ADF Foods Limited |
City Union and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and ADF Foods
The main advantage of trading using opposite City Union and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| City Union vs. JB Chemicals Pharmaceuticals | City Union vs. Computer Age Management | City Union vs. Hindcon Chemicals Limited | City Union vs. Radiant Cash Management |
| ADF Foods vs. Bajaj Holdings Investment | ADF Foods vs. Centum Electronics Limited | ADF Foods vs. Elin Electronics Limited | ADF Foods vs. Transport of |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |