Correlation Between City Union and Ajanta Pharma
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By analyzing existing cross correlation between City Union Bank and Ajanta Pharma Limited, you can compare the effects of market volatilities on City Union and Ajanta Pharma 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 Ajanta Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Ajanta Pharma.
Diversification Opportunities for City Union and Ajanta Pharma
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and Ajanta is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Ajanta Pharma Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ajanta Pharma 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 Ajanta Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ajanta Pharma Limited has no effect on the direction of City Union i.e., City Union and Ajanta Pharma go up and down completely randomly.
Pair Corralation between City Union and Ajanta Pharma
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.76 times more return on investment than Ajanta Pharma. However, City Union Bank is 1.31 times less risky than Ajanta Pharma. It trades about 0.2 of its potential returns per unit of risk. Ajanta Pharma Limited is currently generating about -0.04 per unit of risk. If you would invest 17,414 in City Union Bank on September 13, 2024 and sell it today you would earn a total of 819.00 from holding City Union Bank or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
City Union Bank vs. Ajanta Pharma Limited
Performance |
| Timeline |
| City Union Bank |
| Ajanta Pharma Limited |
City Union and Ajanta Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Ajanta Pharma
The main advantage of trading using opposite City Union and Ajanta Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Ajanta Pharma 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 Ajanta Pharma will offset losses from the drop in Ajanta Pharma's long position.| City Union vs. Reliance Industries Limited | City Union vs. State Bank of | City Union vs. Oil Natural Gas | City Union vs. ICICI Bank Limited |
| Ajanta Pharma vs. Kingfa Science Technology | Ajanta Pharma vs. Rico Auto Industries | Ajanta Pharma vs. GACM Technologies Limited | Ajanta Pharma vs. COSMO FIRST 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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