Correlation Between City Union and Speciality Restaurants
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By analyzing existing cross correlation between City Union Bank and Speciality Restaurants Limited, you can compare the effects of market volatilities on City Union and Speciality Restaurants 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 Speciality Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Speciality Restaurants.
Diversification Opportunities for City Union and Speciality Restaurants
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between City and Speciality is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Speciality Restaurants Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speciality Restaurants 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 Speciality Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speciality Restaurants has no effect on the direction of City Union i.e., City Union and Speciality Restaurants go up and down completely randomly.
Pair Corralation between City Union and Speciality Restaurants
Assuming the 90 days trading horizon City Union Bank is expected to generate 1.25 times more return on investment than Speciality Restaurants. However, City Union is 1.25 times more volatile than Speciality Restaurants Limited. It trades about -0.03 of its potential returns per unit of risk. Speciality Restaurants Limited is currently generating about -0.23 per unit of risk. If you would invest 17,380 in City Union Bank on October 26, 2024 and sell it today you would lose (360.00) from holding City Union Bank or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
City Union Bank vs. Speciality Restaurants Limited
Performance |
| Timeline |
| City Union Bank |
| Speciality Restaurants |
City Union and Speciality Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Speciality Restaurants
The main advantage of trading using opposite City Union and Speciality Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Speciality Restaurants 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 Speciality Restaurants will offset losses from the drop in Speciality Restaurants' long position.| City Union vs. Kaushalya Infrastructure Development | City Union vs. Tarapur Transformers Limited | City Union vs. Kingfa Science Technology | City Union vs. Rico Auto Industries |
| Speciality Restaurants vs. Gallantt Ispat Limited | Speciality Restaurants vs. Hi Tech Pipes Limited | Speciality Restaurants vs. City Union Bank | Speciality Restaurants vs. The Hi Tech Gears |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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