Correlation Between City Union and PB Fintech
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By analyzing existing cross correlation between City Union Bank and PB Fintech Limited, you can compare the effects of market volatilities on City Union and PB Fintech 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 PB Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and PB Fintech.
Diversification Opportunities for City Union and PB Fintech
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and POLICYBZR is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and PB Fintech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PB Fintech 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 PB Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PB Fintech Limited has no effect on the direction of City Union i.e., City Union and PB Fintech go up and down completely randomly.
Pair Corralation between City Union and PB Fintech
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.45 times more return on investment than PB Fintech. However, City Union Bank is 2.22 times less risky than PB Fintech. It trades about 0.08 of its potential returns per unit of risk. PB Fintech Limited is currently generating about -0.29 per unit of risk. If you would invest 16,883 in City Union Bank on November 6, 2024 and sell it today you would earn a total of 442.00 from holding City Union Bank or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Union Bank vs. PB Fintech Limited
Performance |
| Timeline |
| City Union Bank |
| PB Fintech Limited |
City Union and PB Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and PB Fintech
The main advantage of trading using opposite City Union and PB Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, PB Fintech 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 PB Fintech will offset losses from the drop in PB Fintech's long position.| City Union vs. Chembond Chemicals | City Union vs. Nahar Industrial Enterprises | City Union vs. Kavveri Telecom Products | City Union vs. LLOYDS METALS AND |
| PB Fintech vs. Central Bank of | PB Fintech vs. City Union Bank | PB Fintech vs. Banka BioLoo Limited | PB Fintech vs. Jindal Poly Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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