Correlation Between SIL Investments and City Union
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By analyzing existing cross correlation between SIL Investments Limited and City Union Bank, you can compare the effects of market volatilities on SIL Investments 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 SIL Investments with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIL Investments and City Union.
Diversification Opportunities for SIL Investments and City Union
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIL and City is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SIL Investments 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 SIL Investments 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 SIL Investments 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 SIL Investments i.e., SIL Investments and City Union go up and down completely randomly.
Pair Corralation between SIL Investments and City Union
Assuming the 90 days trading horizon SIL Investments Limited is expected to under-perform the City Union. In addition to that, SIL Investments is 1.46 times more volatile than City Union Bank. It trades about -0.15 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 Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SIL Investments Limited vs. City Union Bank
Performance |
| Timeline |
| SIL Investments |
| City Union Bank |
SIL Investments and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIL Investments and City Union
The main advantage of trading using opposite SIL Investments and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIL Investments 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.| SIL Investments vs. State Bank of | SIL Investments vs. Life Insurance | SIL Investments vs. HDFC Bank Limited | SIL Investments vs. ICICI Bank Limited |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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