Correlation Between City Union and Kaynes Technology
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By analyzing existing cross correlation between City Union Bank and Kaynes Technology India, you can compare the effects of market volatilities on City Union and Kaynes Technology 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 Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Kaynes Technology.
Diversification Opportunities for City Union and Kaynes Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and Kaynes is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India 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 Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of City Union i.e., City Union and Kaynes Technology go up and down completely randomly.
Pair Corralation between City Union and Kaynes Technology
Assuming the 90 days trading horizon City Union is expected to generate 4.15 times less return on investment than Kaynes Technology. But when comparing it to its historical volatility, City Union Bank is 1.6 times less risky than Kaynes Technology. It trades about 0.06 of its potential returns per unit of risk. Kaynes Technology India is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 131,930 in Kaynes Technology India on September 19, 2024 and sell it today you would earn a total of 592,350 from holding Kaynes Technology India or generate 448.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.48% |
| Values | Daily Returns |
City Union Bank vs. Kaynes Technology India
Performance |
| Timeline |
| City Union Bank |
| Kaynes Technology India |
City Union and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Kaynes Technology
The main advantage of trading using opposite City Union and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| City Union vs. Reliance Industries Limited | City Union vs. State Bank of | City Union vs. Oil Natural Gas |
| Kaynes Technology vs. Tata Communications Limited | Kaynes Technology vs. Kotak Mahindra Bank | Kaynes Technology vs. Edelweiss Financial Services | Kaynes Technology vs. City Union 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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