Correlation Between Kilitch Drugs and City Union
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By analyzing existing cross correlation between Kilitch Drugs Limited and City Union Bank, you can compare the effects of market volatilities on Kilitch Drugs 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 Kilitch Drugs with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kilitch Drugs and City Union.
Diversification Opportunities for Kilitch Drugs and City Union
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kilitch and City is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kilitch Drugs Limited 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 Kilitch Drugs 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 Kilitch Drugs Limited 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 Kilitch Drugs i.e., Kilitch Drugs and City Union go up and down completely randomly.
Pair Corralation between Kilitch Drugs and City Union
Assuming the 90 days trading horizon Kilitch Drugs Limited is expected to under-perform the City Union. In addition to that, Kilitch Drugs is 1.33 times more volatile than City Union Bank. It trades about -0.02 of its total potential returns per unit of risk. City Union Bank is currently generating about 0.05 per unit of volatility. If you would invest 17,038 in City Union Bank on September 2, 2024 and sell it today you would earn a total of 915.00 from holding City Union Bank or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Kilitch Drugs Limited vs. City Union Bank
Performance |
| Timeline |
| Kilitch Drugs Limited |
| City Union Bank |
Kilitch Drugs and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kilitch Drugs and City Union
The main advantage of trading using opposite Kilitch Drugs and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kilitch Drugs 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.| Kilitch Drugs vs. MRF Limited | Kilitch Drugs vs. Bosch Limited | Kilitch Drugs vs. Bajaj Holdings Investment | Kilitch Drugs vs. Vardhman Holdings Limited |
| City Union vs. Reliance Industries Limited | City Union vs. State Bank of | City Union vs. Oil Natural Gas |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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