Correlation Between City Union and Swan Energy
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By analyzing existing cross correlation between City Union Bank and Swan Energy Limited, you can compare the effects of market volatilities on City Union and Swan Energy 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 Swan Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Union and Swan Energy.
Diversification Opportunities for City Union and Swan Energy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between City and Swan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding City Union Bank and Swan Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swan Energy 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 Swan Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swan Energy Limited has no effect on the direction of City Union i.e., City Union and Swan Energy go up and down completely randomly.
Pair Corralation between City Union and Swan Energy
Assuming the 90 days trading horizon City Union Bank is expected to generate 0.51 times more return on investment than Swan Energy. However, City Union Bank is 1.95 times less risky than Swan Energy. It trades about -0.22 of its potential returns per unit of risk. Swan Energy Limited is currently generating about -0.26 per unit of risk. If you would invest 16,351 in City Union Bank on November 28, 2024 and sell it today you would lose (1,485) from holding City Union Bank or give up 9.08% 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. Swan Energy Limited
Performance |
| Timeline |
| City Union Bank |
| Swan Energy Limited |
City Union and Swan Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Union and Swan Energy
The main advantage of trading using opposite City Union and Swan Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Union position performs unexpectedly, Swan Energy 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 Swan Energy will offset losses from the drop in Swan Energy's long position.| City Union vs. Manaksia Coated Metals | City Union vs. Agarwal Industrial | City Union vs. Akums Drugs and | City Union vs. Popular Vehicles and |
| Swan Energy vs. Tamilnadu Telecommunication Limited | Swan Energy vs. Computer Age Management | Swan Energy vs. Kavveri Telecom Products | Swan Energy vs. Ortel Communications 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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