Correlation Between City Union and Exide Industries
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By analyzing existing cross correlation between City Union Bank and Exide Industries Limited, you can compare the effects of market volatilities on City Union and Exide Industries 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 Exide Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Exide Industries.
Diversification Opportunities for City Union and Exide Industries
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Exide is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Exide Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exide Industries 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 Exide Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exide Industries has no effect on the direction of City Union i.e., City Union and Exide Industries go up and down completely randomly.
Pair Corralation between City Union and Exide Industries
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.96 times more return on investment than Exide Industries. However, City Union Bank is 1.04 times less risky than Exide Industries. It trades about 0.03 of its potential returns per unit of risk. Exide Industries Limited is currently generating about -0.1 per unit of risk. If you would invest 16,969 in City Union Bank on August 28, 2024 and sell it today you would earn a total of 411.00 from holding City Union Bank or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Union Bank vs. Exide Industries Limited
Performance |
| Timeline |
| City Union Bank |
| Exide Industries |
City Union and Exide Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Exide Industries
The main advantage of trading using opposite City Union and Exide Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Exide Industries 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 Exide Industries will offset losses from the drop in Exide Industries' long position.| City Union vs. MRF Limited | City Union vs. JSW Holdings Limited | City Union vs. Maharashtra Scooters Limited | City Union vs. Nalwa Sons Investments |
| Exide Industries vs. LT Foods Limited | Exide Industries vs. Selan Exploration Technology | Exide Industries vs. Nucleus Software Exports | Exide Industries vs. Hindustan Foods 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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