Correlation Between City Union and Avonmore Capital
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By analyzing existing cross correlation between City Union Bank and Avonmore Capital Management, you can compare the effects of market volatilities on City Union 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 City Union with a short position of Avonmore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Avonmore Capital.
Diversification Opportunities for City Union and Avonmore Capital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between City and Avonmore is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank 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 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 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 City Union i.e., City Union and Avonmore Capital go up and down completely randomly.
Pair Corralation between City Union and Avonmore Capital
Assuming the 90 days trading horizon City Union is expected to generate 6.95 times less return on investment than Avonmore Capital. But when comparing it to its historical volatility, City Union Bank is 3.46 times less risky than Avonmore Capital. It trades about 0.09 of its potential returns per unit of risk. Avonmore Capital Management is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,522 in Avonmore Capital Management on September 1, 2024 and sell it today you would earn a total of 243.00 from holding Avonmore Capital Management or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
City Union Bank vs. Avonmore Capital Management
Performance |
| Timeline |
| City Union Bank |
| Avonmore Capital Man |
City Union and Avonmore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Avonmore Capital
The main advantage of trading using opposite City Union and Avonmore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union 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.| City Union vs. Reliance Industrial Infrastructure | City Union vs. NRB Industrial Bearings | City Union vs. Indian Metals Ferro | City Union vs. Shivalik Bimetal Controls |
| Avonmore Capital vs. IDBI Bank Limited | Avonmore Capital vs. Bank of Maharashtra | Avonmore Capital vs. Hilton Metal Forging | Avonmore Capital vs. The Federal Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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