Correlation Between City Union and Mangalam Drugs
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By analyzing existing cross correlation between City Union Bank and Mangalam Drugs And, you can compare the effects of market volatilities on City Union and Mangalam Drugs 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 Mangalam Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Mangalam Drugs.
Diversification Opportunities for City Union and Mangalam Drugs
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between City and Mangalam is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Mangalam Drugs And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangalam Drugs And 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 Mangalam Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangalam Drugs And has no effect on the direction of City Union i.e., City Union and Mangalam Drugs go up and down completely randomly.
Pair Corralation between City Union and Mangalam Drugs
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.68 times more return on investment than Mangalam Drugs. However, City Union Bank is 1.46 times less risky than Mangalam Drugs. It trades about 0.04 of its potential returns per unit of risk. Mangalam Drugs And is currently generating about 0.03 per unit of risk. If you would invest 15,278 in City Union Bank on August 31, 2024 and sell it today you would earn a total of 2,690 from holding City Union Bank or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
City Union Bank vs. Mangalam Drugs And
Performance |
| Timeline |
| City Union Bank |
| Mangalam Drugs And |
City Union and Mangalam Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Mangalam Drugs
The main advantage of trading using opposite City Union and Mangalam Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Mangalam Drugs 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 Mangalam Drugs will offset losses from the drop in Mangalam Drugs' long position.| City Union vs. ICICI Securities Limited | City Union vs. Nippon Life India | City Union vs. Fortis Healthcare Limited | City Union vs. ICICI Lombard General |
| Mangalam Drugs vs. MRF Limited | Mangalam Drugs vs. Honeywell Automation India | Mangalam Drugs vs. Page Industries Limited | Mangalam Drugs vs. 3M India 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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