Correlation Between City Union and Hisar Metal
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By analyzing existing cross correlation between City Union Bank and Hisar Metal Industries, you can compare the effects of market volatilities on City Union and Hisar 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 Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Hisar Metal.
Diversification Opportunities for City Union and Hisar Metal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Hisar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal 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 Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of City Union i.e., City Union and Hisar Metal go up and down completely randomly.
Pair Corralation between City Union and Hisar Metal
Assuming the 90 days trading horizon City Union is expected to generate 13.19 times less return on investment than Hisar Metal. But when comparing it to its historical volatility, City Union Bank is 1.62 times less risky than Hisar Metal. It trades about 0.0 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13,728 in Hisar Metal Industries on September 5, 2024 and sell it today you would earn a total of 3,775 from holding Hisar Metal Industries or generate 27.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
City Union Bank vs. Hisar Metal Industries
Performance |
| Timeline |
| City Union Bank |
| Hisar Metal Industries |
City Union and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Hisar Metal
The main advantage of trading using opposite City Union and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Hisar 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| City Union vs. Hisar Metal Industries | City Union vs. Indraprastha Medical | City Union vs. Shyam Metalics and | City Union vs. Gujarat Lease Financing |
| Hisar Metal vs. NMDC Limited | Hisar Metal vs. Steel Authority of | Hisar Metal vs. Embassy Office Parks | Hisar Metal vs. Gujarat Narmada Valley |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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