Correlation Between Spencers Retail and City Union
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By analyzing existing cross correlation between Spencers Retail Limited and City Union Bank, you can compare the effects of market volatilities on Spencers Retail 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 Spencers Retail with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and City Union.
Diversification Opportunities for Spencers Retail and City Union
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spencers and City is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail 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 Spencers Retail 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 Spencers Retail 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 Spencers Retail i.e., Spencers Retail and City Union go up and down completely randomly.
Pair Corralation between Spencers Retail and City Union
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the City Union. In addition to that, Spencers Retail is 1.34 times more volatile than City Union Bank. It trades about -0.08 of its total potential returns per unit of risk. City Union Bank is currently generating about 0.07 per unit of volatility. If you would invest 15,394 in City Union Bank on October 14, 2024 and sell it today you would earn a total of 1,134 from holding City Union Bank or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. City Union Bank
Performance |
| Timeline |
| Spencers Retail |
| City Union Bank |
Spencers Retail and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and City Union
The main advantage of trading using opposite Spencers Retail and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail 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.| Spencers Retail vs. WESTLIFE FOODWORLD LIMITED | Spencers Retail vs. Sarveshwar Foods Limited | Spencers Retail vs. Privi Speciality Chemicals | Spencers Retail vs. Patanjali Foods Limited |
| City Union vs. WESTLIFE FOODWORLD LIMITED | City Union vs. Apex Frozen Foods | City Union vs. Jubilant Foodworks Limited | City Union vs. Ankit Metal Power |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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