Correlation Between UCO Bank and City Union
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By analyzing existing cross correlation between UCO Bank and City Union Bank, you can compare the effects of market volatilities on UCO Bank 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 UCO Bank with a short position of City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of UCO Bank and City Union.
Diversification Opportunities for UCO Bank and City Union
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UCO and City is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding UCO Bank 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 UCO Bank 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 UCO Bank 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 UCO Bank i.e., UCO Bank and City Union go up and down completely randomly.
Pair Corralation between UCO Bank and City Union
Assuming the 90 days trading horizon UCO Bank is expected to generate 2.98 times more return on investment than City Union. However, UCO Bank is 2.98 times more volatile than City Union Bank. It trades about -0.03 of its potential returns per unit of risk. City Union Bank is currently generating about -0.12 per unit of risk. If you would invest 4,524 in UCO Bank on October 20, 2024 and sell it today you would lose (217.00) from holding UCO Bank or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
UCO Bank vs. City Union Bank
Performance |
| Timeline |
| UCO Bank |
| City Union Bank |
UCO Bank and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UCO Bank and City Union
The main advantage of trading using opposite UCO Bank and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UCO Bank 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.| UCO Bank vs. ADF Foods Limited | UCO Bank vs. Sapphire Foods India | UCO Bank vs. Varun Beverages Limited | UCO Bank vs. Bikaji Foods International |
| City Union vs. HDFC Asset Management | City Union vs. SIL Investments Limited | City Union vs. V Mart Retail Limited | City Union vs. Spencers Retail 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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