Correlation Between Federal Bank and Yes Bank
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By analyzing existing cross correlation between The Federal Bank and Yes Bank Limited, you can compare the effects of market volatilities on Federal Bank and Yes 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 Federal Bank with a short position of Yes Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Bank and Yes Bank.
Diversification Opportunities for Federal Bank and Yes Bank
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federal and Yes is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Federal Bank and Yes Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Bank Limited 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 Yes Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Bank Limited has no effect on the direction of Federal Bank i.e., Federal Bank and Yes Bank go up and down completely randomly.
Pair Corralation between Federal Bank and Yes Bank
Assuming the 90 days trading horizon The Federal Bank is expected to generate 0.62 times more return on investment than Yes Bank. However, The Federal Bank is 1.6 times less risky than Yes Bank. It trades about 0.07 of its potential returns per unit of risk. Yes Bank Limited is currently generating about 0.02 per unit of risk. If you would invest 12,625 in The Federal Bank on September 12, 2024 and sell it today you would earn a total of 8,809 from holding The Federal Bank or generate 69.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
The Federal Bank vs. Yes Bank Limited
Performance |
| Timeline |
| Federal Bank |
| Yes Bank Limited |
Federal Bank and Yes Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Bank and Yes Bank
The main advantage of trading using opposite Federal Bank and Yes Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Bank position performs unexpectedly, Yes 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 Yes Bank will offset losses from the drop in Yes Bank's long position.| Federal Bank vs. Yes Bank Limited | Federal Bank vs. Indian Oil | Federal Bank vs. Indo Borax Chemicals | Federal Bank vs. Kingfa Science Technology |
| Yes Bank vs. Cybertech Systems And | Yes Bank vs. Unitech Limited | Yes Bank vs. Uniinfo Telecom Services | Yes Bank vs. Pritish Nandy Communications |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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