Correlation Between Yes Bank and Bandhan Bank
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By analyzing existing cross correlation between Yes Bank Limited and Bandhan Bank Limited, you can compare the effects of market volatilities on Yes Bank and Bandhan 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 Yes Bank with a short position of Bandhan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Bandhan Bank.
Diversification Opportunities for Yes Bank and Bandhan Bank
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and Bandhan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Bandhan Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bandhan Bank Limited 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 Bandhan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bandhan Bank Limited has no effect on the direction of Yes Bank i.e., Yes Bank and Bandhan Bank go up and down completely randomly.
Pair Corralation between Yes Bank and Bandhan Bank
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 1.16 times more return on investment than Bandhan Bank. However, Yes Bank is 1.16 times more volatile than Bandhan Bank Limited. It trades about 0.04 of its potential returns per unit of risk. Bandhan Bank Limited is currently generating about -0.02 per unit of risk. If you would invest 1,695 in Yes Bank Limited on September 12, 2024 and sell it today you would earn a total of 465.00 from holding Yes Bank Limited or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.69% |
| Values | Daily Returns |
Yes Bank Limited vs. Bandhan Bank Limited
Performance |
| Timeline |
| Yes Bank Limited |
| Bandhan Bank Limited |
Yes Bank and Bandhan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Bandhan Bank
The main advantage of trading using opposite Yes Bank and Bandhan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Bandhan 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 Bandhan Bank will offset losses from the drop in Bandhan Bank's long position.| Yes Bank vs. Cybertech Systems And | Yes Bank vs. Unitech Limited | Yes Bank vs. Uniinfo Telecom Services | Yes Bank vs. Pritish Nandy Communications |
| Bandhan Bank vs. Yes Bank Limited | Bandhan Bank vs. Indian Oil | Bandhan Bank vs. Indo Borax Chemicals | Bandhan Bank vs. Kingfa Science Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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