Correlation Between Federal Bank and EID Parry
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Federal Bank and EID Parry India, you can compare the effects of market volatilities on Federal Bank and EID Parry 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 Federal Bank with a short position of EID Parry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Bank and EID Parry.
Diversification Opportunities for Federal Bank and EID Parry
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federal and EID is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding The Federal Bank and EID Parry India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EID Parry India and Federal Bank 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 The Federal Bank are associated (or correlated) with EID Parry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EID Parry India has no effect on the direction of Federal Bank i.e., Federal Bank and EID Parry go up and down completely randomly.
Pair Corralation between Federal Bank and EID Parry
Assuming the 90 days trading horizon Federal Bank is expected to generate 3.07 times less return on investment than EID Parry. But when comparing it to its historical volatility, The Federal Bank is 1.68 times less risky than EID Parry. It trades about 0.12 of its potential returns per unit of risk. EID Parry India is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 81,680 in EID Parry India on September 13, 2024 and sell it today you would earn a total of 9,360 from holding EID Parry India or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Federal Bank vs. EID Parry India
Performance |
| Timeline |
| Federal Bank |
| EID Parry India |
Federal Bank and EID Parry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Bank and EID Parry
The main advantage of trading using opposite Federal Bank and EID Parry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Bank position performs unexpectedly, EID Parry 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 EID Parry will offset losses from the drop in EID Parry's long position.| Federal Bank vs. Reliance Industries Limited | Federal Bank vs. State Bank of | Federal Bank vs. Oil Natural Gas | Federal Bank vs. ICICI Bank Limited |
| EID Parry vs. The Orissa Minerals | EID Parry vs. Malu Paper Mills | EID Parry vs. Kingfa Science Technology | EID Parry vs. Rico Auto Industries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |