Correlation Between Jindal Poly and City Union
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By analyzing existing cross correlation between Jindal Poly Investment and City Union Bank, you can compare the effects of market volatilities on Jindal Poly 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 Jindal Poly with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Poly and City Union.
Diversification Opportunities for Jindal Poly and City Union
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jindal and City is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Poly Investment 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 Jindal Poly 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 Jindal Poly Investment 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 Jindal Poly i.e., Jindal Poly and City Union go up and down completely randomly.
Pair Corralation between Jindal Poly and City Union
Assuming the 90 days trading horizon Jindal Poly Investment is expected to under-perform the City Union. In addition to that, Jindal Poly is 1.51 times more volatile than City Union Bank. It trades about -0.37 of its total potential returns per unit of risk. City Union Bank is currently generating about -0.04 per unit of volatility. If you would invest 17,459 in City Union Bank on October 25, 2024 and sell it today you would lose (250.00) from holding City Union Bank or give up 1.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jindal Poly Investment vs. City Union Bank
Performance |
| Timeline |
| Jindal Poly Investment |
| City Union Bank |
Jindal Poly and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Poly and City Union
The main advantage of trading using opposite Jindal Poly and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Poly 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.| Jindal Poly vs. The Indian Hotels | Jindal Poly vs. Taj GVK Hotels | Jindal Poly vs. Indian Card Clothing | Jindal Poly vs. S P Apparels |
| City Union vs. State Bank of | City Union vs. Life Insurance | City Union vs. HDFC Bank Limited | City Union vs. ICICI Bank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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