Correlation Between Tamilnad Mercantile and Yes Bank
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By analyzing existing cross correlation between Tamilnad Mercantile Bank and Yes Bank Limited, you can compare the effects of market volatilities on Tamilnad Mercantile and Yes 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 Tamilnad Mercantile with a short position of Yes Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamilnad Mercantile and Yes Bank.
Diversification Opportunities for Tamilnad Mercantile and Yes Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tamilnad and Yes is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tamilnad Mercantile Bank and Yes Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Bank Limited and Tamilnad Mercantile 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 Tamilnad Mercantile Bank are associated (or correlated) with Yes Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Bank Limited has no effect on the direction of Tamilnad Mercantile i.e., Tamilnad Mercantile and Yes Bank go up and down completely randomly.
Pair Corralation between Tamilnad Mercantile and Yes Bank
Assuming the 90 days trading horizon Tamilnad Mercantile Bank is expected to generate 0.61 times more return on investment than Yes Bank. However, Tamilnad Mercantile Bank is 1.64 times less risky than Yes Bank. It trades about 0.0 of its potential returns per unit of risk. Yes Bank Limited is currently generating about 0.0 per unit of risk. If you would invest 50,017 in Tamilnad Mercantile Bank on September 3, 2024 and sell it today you would lose (2,682) from holding Tamilnad Mercantile Bank or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tamilnad Mercantile Bank vs. Yes Bank Limited
Performance |
| Timeline |
| Tamilnad Mercantile Bank |
| Yes Bank Limited |
Tamilnad Mercantile and Yes Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamilnad Mercantile and Yes Bank
The main advantage of trading using opposite Tamilnad Mercantile and Yes Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamilnad Mercantile position performs unexpectedly, Yes 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 Yes Bank will offset losses from the drop in Yes Bank's long position.| Tamilnad Mercantile vs. Max Financial Services | Tamilnad Mercantile vs. Varun Beverages Limited | Tamilnad Mercantile vs. Elgi Rubber | Tamilnad Mercantile vs. The Federal Bank |
| Yes Bank vs. Mahamaya Steel Industries | Yes Bank vs. Nucleus Software Exports | Yes Bank vs. Kavveri Telecom Products | Yes Bank vs. Visa Steel 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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