Correlation Between Indraprastha Medical and City Union
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By analyzing existing cross correlation between Indraprastha Medical and City Union Bank, you can compare the effects of market volatilities on Indraprastha Medical and City Union 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 Indraprastha Medical with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indraprastha Medical and City Union.
Diversification Opportunities for Indraprastha Medical and City Union
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indraprastha and City is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Indraprastha Medical and City Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Union Bank and Indraprastha Medical 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 Indraprastha Medical are associated (or correlated) with City Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Union Bank has no effect on the direction of Indraprastha Medical i.e., Indraprastha Medical and City Union go up and down completely randomly.
Pair Corralation between Indraprastha Medical and City Union
Assuming the 90 days trading horizon Indraprastha Medical is expected to generate 2.64 times more return on investment than City Union. However, Indraprastha Medical is 2.64 times more volatile than City Union Bank. It trades about 0.26 of its potential returns per unit of risk. City Union Bank is currently generating about 0.1 per unit of risk. If you would invest 41,935 in Indraprastha Medical on September 5, 2024 and sell it today you would earn a total of 7,845 from holding Indraprastha Medical or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Indraprastha Medical vs. City Union Bank
Performance |
| Timeline |
| Indraprastha Medical |
| City Union Bank |
Indraprastha Medical and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indraprastha Medical and City Union
The main advantage of trading using opposite Indraprastha Medical and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indraprastha Medical position performs unexpectedly, City Union 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 City Union will offset losses from the drop in City Union's long position.| Indraprastha Medical vs. Reliance Industries Limited | Indraprastha Medical vs. Life Insurance | Indraprastha Medical vs. Indian Oil | Indraprastha Medical vs. Oil Natural Gas |
| City Union vs. Hisar Metal Industries | City Union vs. Indraprastha Medical | City Union vs. Shyam Metalics and | City Union vs. Gujarat Lease Financing |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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