Correlation Between Yes Bank and Federal Bank
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By analyzing existing cross correlation between Yes Bank Limited and The Federal Bank, you can compare the effects of market volatilities on Yes Bank and Federal 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 Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Federal Bank.
Diversification Opportunities for Yes Bank and Federal Bank
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Yes and Federal is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Bank 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 Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of Yes Bank i.e., Yes Bank and Federal Bank go up and down completely randomly.
Pair Corralation between Yes Bank and Federal Bank
Assuming the 90 days trading horizon Yes Bank is expected to generate 1.41 times less return on investment than Federal Bank. In addition to that, Yes Bank is 1.7 times more volatile than The Federal Bank. It trades about 0.04 of its total potential returns per unit of risk. The Federal Bank is currently generating about 0.1 per unit of volatility. If you would invest 13,346 in The Federal Bank on September 12, 2024 and sell it today you would earn a total of 8,088 from holding The Federal Bank or generate 60.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.69% |
| Values | Daily Returns |
Yes Bank Limited vs. The Federal Bank
Performance |
| Timeline |
| Yes Bank Limited |
| Federal Bank |
Yes Bank and Federal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Federal Bank
The main advantage of trading using opposite Yes Bank and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Federal 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 Federal Bank will offset losses from the drop in Federal 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 |
| Federal Bank vs. Yes Bank Limited | Federal Bank vs. Indian Oil | Federal Bank vs. Indo Borax Chemicals | Federal 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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