Correlation Between City Union and SINCLAIRS HOTELS
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By analyzing existing cross correlation between City Union Bank and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on City Union and SINCLAIRS HOTELS 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 SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and SINCLAIRS HOTELS.
Diversification Opportunities for City Union and SINCLAIRS HOTELS
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and SINCLAIRS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of City Union i.e., City Union and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between City Union and SINCLAIRS HOTELS
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.78 times more return on investment than SINCLAIRS HOTELS. However, City Union Bank is 1.28 times less risky than SINCLAIRS HOTELS. It trades about 0.02 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about -0.01 per unit of risk. If you would invest 15,748 in City Union Bank on October 9, 2024 and sell it today you would earn a total of 1,135 from holding City Union Bank or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 37.86% |
| Values | Daily Returns |
City Union Bank vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| City Union Bank |
| SINCLAIRS HOTELS ORD |
City Union and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and SINCLAIRS HOTELS
The main advantage of trading using opposite City Union and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, SINCLAIRS HOTELS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.| City Union vs. Jindal Poly Investment | City Union vs. SIL Investments Limited | City Union vs. Ratnamani Metals Tubes | City Union vs. Kalyani Investment |
| SINCLAIRS HOTELS vs. Privi Speciality Chemicals | SINCLAIRS HOTELS vs. Fertilizers and Chemicals | SINCLAIRS HOTELS vs. Vishnu Chemicals Limited | SINCLAIRS HOTELS vs. Sanginita Chemicals 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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