Correlation Between Sukhjit Starch and City Union
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By analyzing existing cross correlation between Sukhjit Starch Chemicals and City Union Bank, you can compare the effects of market volatilities on Sukhjit Starch 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 Sukhjit Starch with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sukhjit Starch and City Union.
Diversification Opportunities for Sukhjit Starch and City Union
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sukhjit and City is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sukhjit Starch Chemicals 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 Sukhjit Starch 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 Sukhjit Starch Chemicals 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 Sukhjit Starch i.e., Sukhjit Starch and City Union go up and down completely randomly.
Pair Corralation between Sukhjit Starch and City Union
Assuming the 90 days trading horizon Sukhjit Starch Chemicals is expected to generate 2.08 times more return on investment than City Union. However, Sukhjit Starch is 2.08 times more volatile than City Union Bank. It trades about 0.16 of its potential returns per unit of risk. City Union Bank is currently generating about 0.09 per unit of risk. If you would invest 24,915 in Sukhjit Starch Chemicals on September 1, 2024 and sell it today you would earn a total of 1,953 from holding Sukhjit Starch Chemicals or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sukhjit Starch Chemicals vs. City Union Bank
Performance |
| Timeline |
| Sukhjit Starch Chemicals |
| City Union Bank |
Sukhjit Starch and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sukhjit Starch and City Union
The main advantage of trading using opposite Sukhjit Starch and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sukhjit Starch 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.| Sukhjit Starch vs. Sumitomo Chemical India | Sukhjit Starch vs. DMCC SPECIALITY CHEMICALS | Sukhjit Starch vs. California Software | Sukhjit Starch vs. Selan Exploration Technology |
| City Union vs. Reliance Industrial Infrastructure | City Union vs. NRB Industrial Bearings | City Union vs. Indian Metals Ferro | City Union vs. Shivalik Bimetal Controls |
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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