Correlation Between City Union and Mindteck
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By analyzing existing cross correlation between City Union Bank and Mindteck Limited, you can compare the effects of market volatilities on City Union and Mindteck 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 Mindteck. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Mindteck.
Diversification Opportunities for City Union and Mindteck
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and Mindteck is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Mindteck Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mindteck Limited 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 Mindteck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mindteck Limited has no effect on the direction of City Union i.e., City Union and Mindteck go up and down completely randomly.
Pair Corralation between City Union and Mindteck
Assuming the 90 days trading horizon City Union is expected to generate 2.25 times less return on investment than Mindteck. But when comparing it to its historical volatility, City Union Bank is 4.55 times less risky than Mindteck. It trades about 0.43 of its potential returns per unit of risk. Mindteck Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 23,955 in Mindteck Limited on September 18, 2024 and sell it today you would earn a total of 4,940 from holding Mindteck Limited or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
City Union Bank vs. Mindteck Limited
Performance |
| Timeline |
| City Union Bank |
| Mindteck Limited |
City Union and Mindteck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Mindteck
The main advantage of trading using opposite City Union and Mindteck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Mindteck 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 Mindteck will offset losses from the drop in Mindteck's long position.| City Union vs. Bharatiya Global Infomedia | City Union vs. HT Media Limited | City Union vs. Blue Coast Hotels | City Union vs. Sambhaav Media Limited |
| Mindteck vs. ICICI Bank Limited | Mindteck vs. Bank of Maharashtra | Mindteck vs. City Union Bank | Mindteck vs. UCO 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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