Correlation Between Yes Bank and Bajaj Hindusthan
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By analyzing existing cross correlation between Yes Bank Limited and Bajaj Hindusthan Sugar, you can compare the effects of market volatilities on Yes Bank and Bajaj Hindusthan 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 Yes Bank with a short position of Bajaj Hindusthan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Bajaj Hindusthan.
Diversification Opportunities for Yes Bank and Bajaj Hindusthan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and Bajaj is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Bajaj Hindusthan Sugar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Hindusthan Sugar and Yes 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 Yes Bank Limited are associated (or correlated) with Bajaj Hindusthan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Hindusthan Sugar has no effect on the direction of Yes Bank i.e., Yes Bank and Bajaj Hindusthan go up and down completely randomly.
Pair Corralation between Yes Bank and Bajaj Hindusthan
Assuming the 90 days trading horizon Yes Bank Limited is expected to under-perform the Bajaj Hindusthan. But the stock apears to be less risky and, when comparing its historical volatility, Yes Bank Limited is 1.37 times less risky than Bajaj Hindusthan. The stock trades about -0.14 of its potential returns per unit of risk. The Bajaj Hindusthan Sugar is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,110 in Bajaj Hindusthan Sugar on October 24, 2024 and sell it today you would lose (144.00) from holding Bajaj Hindusthan Sugar or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. Bajaj Hindusthan Sugar
Performance |
| Timeline |
| Yes Bank Limited |
| Bajaj Hindusthan Sugar |
Yes Bank and Bajaj Hindusthan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Bajaj Hindusthan
The main advantage of trading using opposite Yes Bank and Bajaj Hindusthan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Bajaj Hindusthan 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 Bajaj Hindusthan will offset losses from the drop in Bajaj Hindusthan's long position.| Yes Bank vs. Reliance Industries Limited | Yes Bank vs. HDFC Bank Limited | Yes Bank vs. Kingfa Science Technology | Yes Bank vs. Rico Auto Industries |
| Bajaj Hindusthan vs. Yes Bank Limited | Bajaj Hindusthan vs. Indian Oil | Bajaj Hindusthan vs. Kingfa Science Technology | Bajaj Hindusthan vs. Rico Auto Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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