Correlation Between City Union and COSMO FIRST
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By analyzing existing cross correlation between City Union Bank and COSMO FIRST LIMITED, you can compare the effects of market volatilities on City Union and COSMO FIRST 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 COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and COSMO FIRST.
Diversification Opportunities for City Union and COSMO FIRST
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between City and COSMO is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST 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 COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of City Union i.e., City Union and COSMO FIRST go up and down completely randomly.
Pair Corralation between City Union and COSMO FIRST
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.61 times more return on investment than COSMO FIRST. However, City Union Bank is 1.65 times less risky than COSMO FIRST. It trades about 0.07 of its potential returns per unit of risk. COSMO FIRST LIMITED is currently generating about -0.09 per unit of risk. If you would invest 16,715 in City Union Bank on August 24, 2024 and sell it today you would earn a total of 294.00 from holding City Union Bank or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
City Union Bank vs. COSMO FIRST LIMITED
Performance |
| Timeline |
| City Union Bank |
| COSMO FIRST LIMITED |
City Union and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and COSMO FIRST
The main advantage of trading using opposite City Union and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, COSMO FIRST 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 COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.| City Union vs. HT Media Limited | City Union vs. Apollo Sindoori Hotels | City Union vs. Advani Hotels Resorts | City Union vs. Chalet Hotels Limited |
| COSMO FIRST vs. City Union Bank | COSMO FIRST vs. OnMobile Global Limited | COSMO FIRST vs. Ortel Communications Limited | COSMO FIRST vs. R S Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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