Correlation Between City Union and Ankit Metal
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By analyzing existing cross correlation between City Union Bank and Ankit Metal Power, you can compare the effects of market volatilities on City Union and Ankit Metal 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 Ankit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Ankit Metal.
Diversification Opportunities for City Union and Ankit Metal
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between City and Ankit is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power 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 Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of City Union i.e., City Union and Ankit Metal go up and down completely randomly.
Pair Corralation between City Union and Ankit Metal
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.44 times more return on investment than Ankit Metal. However, City Union Bank is 2.27 times less risky than Ankit Metal. It trades about 0.05 of its potential returns per unit of risk. Ankit Metal Power is currently generating about -0.02 per unit of risk. If you would invest 17,186 in City Union Bank on August 28, 2024 and sell it today you would earn a total of 194.00 from holding City Union Bank or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
City Union Bank vs. Ankit Metal Power
Performance |
| Timeline |
| City Union Bank |
| Ankit Metal Power |
City Union and Ankit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Ankit Metal
The main advantage of trading using opposite City Union and Ankit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Ankit Metal 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 Ankit Metal will offset losses from the drop in Ankit Metal's long position.| City Union vs. Ankit Metal Power | City Union vs. Ratnamani Metals Tubes | City Union vs. Landmark Cars Limited | City Union vs. Shivalik Bimetal Controls |
| Ankit Metal vs. NMDC Limited | Ankit Metal vs. Embassy Office Parks | Ankit Metal vs. Gujarat Narmada Valley | Ankit Metal vs. Gujarat Alkalies and |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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