Correlation Between City Union and Mask Investments
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By analyzing existing cross correlation between City Union Bank and Mask Investments Limited, you can compare the effects of market volatilities on City Union and Mask Investments 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 Mask Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Mask Investments.
Diversification Opportunities for City Union and Mask Investments
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and Mask is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Mask Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mask Investments 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 Mask Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mask Investments has no effect on the direction of City Union i.e., City Union and Mask Investments go up and down completely randomly.
Pair Corralation between City Union and Mask Investments
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.53 times more return on investment than Mask Investments. However, City Union Bank is 1.9 times less risky than Mask Investments. It trades about -0.08 of its potential returns per unit of risk. Mask Investments Limited is currently generating about -0.11 per unit of risk. If you would invest 17,246 in City Union Bank on October 29, 2024 and sell it today you would lose (497.00) from holding City Union Bank or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Union Bank vs. Mask Investments Limited
Performance |
| Timeline |
| City Union Bank |
| Mask Investments |
City Union and Mask Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Mask Investments
The main advantage of trading using opposite City Union and Mask Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Mask Investments 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 Mask Investments will offset losses from the drop in Mask Investments' long position.| City Union vs. Bharat Road Network | City Union vs. Kalyani Investment | City Union vs. Jindal Poly Investment | City Union vs. Music Broadcast Limited |
| Mask Investments vs. State Bank of | Mask Investments vs. Reliance Industries Limited | Mask Investments vs. HDFC Bank Limited | Mask Investments vs. Tata Motors 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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