Correlation Between Speciality Restaurants and Federal Bank
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By analyzing existing cross correlation between Speciality Restaurants Limited and The Federal Bank, you can compare the effects of market volatilities on Speciality Restaurants and Federal 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 Speciality Restaurants with a short position of Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speciality Restaurants and Federal Bank.
Diversification Opportunities for Speciality Restaurants and Federal Bank
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Speciality and Federal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Speciality Restaurants Limited and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Bank and Speciality Restaurants 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 Speciality Restaurants Limited are associated (or correlated) with Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of Speciality Restaurants i.e., Speciality Restaurants and Federal Bank go up and down completely randomly.
Pair Corralation between Speciality Restaurants and Federal Bank
Assuming the 90 days trading horizon Speciality Restaurants Limited is expected to under-perform the Federal Bank. In addition to that, Speciality Restaurants is 1.5 times more volatile than The Federal Bank. It trades about -0.02 of its total potential returns per unit of risk. The Federal Bank is currently generating about 0.06 per unit of volatility. If you would invest 13,458 in The Federal Bank on September 25, 2024 and sell it today you would earn a total of 6,244 from holding The Federal Bank or generate 46.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Speciality Restaurants Limited vs. The Federal Bank
Performance |
| Timeline |
| Speciality Restaurants |
| Federal Bank |
Speciality Restaurants and Federal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speciality Restaurants and Federal Bank
The main advantage of trading using opposite Speciality Restaurants and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speciality Restaurants position performs unexpectedly, Federal 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 Federal Bank will offset losses from the drop in Federal Bank's long position.| Speciality Restaurants vs. PNC Infratech Limited | Speciality Restaurants vs. Fairchem Organics Limited | Speciality Restaurants vs. Jayant Agro Organics | Speciality Restaurants vs. Jaypee Infratech Limited |
| Federal Bank vs. Kingfa Science Technology | Federal Bank vs. Rico Auto Industries | Federal Bank vs. GACM Technologies Limited | Federal Bank vs. COSMO FIRST 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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