Correlation Between Electronics Mart and UCO Bank
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By analyzing existing cross correlation between Electronics Mart India and UCO Bank, you can compare the effects of market volatilities on Electronics Mart and UCO Bank 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 Electronics Mart with a short position of UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics Mart and UCO Bank.
Diversification Opportunities for Electronics Mart and UCO Bank
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Electronics and UCO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Electronics Mart India and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO Bank and Electronics Mart 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 Electronics Mart India are associated (or correlated) with UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of Electronics Mart i.e., Electronics Mart and UCO Bank go up and down completely randomly.
Pair Corralation between Electronics Mart and UCO Bank
Assuming the 90 days trading horizon Electronics Mart India is expected to under-perform the UCO Bank. In addition to that, Electronics Mart is 1.18 times more volatile than UCO Bank. It trades about -0.24 of its total potential returns per unit of risk. UCO Bank is currently generating about -0.27 per unit of volatility. If you would invest 3,996 in UCO Bank on December 14, 2024 and sell it today you would lose (476.00) from holding UCO Bank or give up 11.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronics Mart India vs. UCO Bank
Performance |
| Timeline |
| Electronics Mart India |
| UCO Bank |
Electronics Mart and UCO Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronics Mart and UCO Bank
The main advantage of trading using opposite Electronics Mart and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics Mart position performs unexpectedly, UCO Bank 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 UCO Bank will offset losses from the drop in UCO Bank's long position.| Electronics Mart vs. Osia Hyper Retail | ||
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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