Correlation Between Yes Bank and General Insurance
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By analyzing existing cross correlation between Yes Bank Limited and General Insurance, you can compare the effects of market volatilities on Yes Bank and General Insurance 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 General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and General Insurance.
Diversification Opportunities for Yes Bank and General Insurance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yes and General is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance 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 General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Yes Bank i.e., Yes Bank and General Insurance go up and down completely randomly.
Pair Corralation between Yes Bank and General Insurance
Assuming the 90 days trading horizon Yes Bank is expected to generate 1.66 times less return on investment than General Insurance. But when comparing it to its historical volatility, Yes Bank Limited is 1.02 times less risky than General Insurance. It trades about 0.23 of its potential returns per unit of risk. General Insurance is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 36,630 in General Insurance on September 13, 2024 and sell it today you would earn a total of 5,905 from holding General Insurance or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. General Insurance
Performance |
| Timeline |
| Yes Bank Limited |
| General Insurance |
Yes Bank and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and General Insurance
The main advantage of trading using opposite Yes Bank and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| Yes Bank vs. Reliance Industries Limited | Yes Bank vs. State Bank of | Yes Bank vs. Oil Natural Gas | Yes Bank vs. ICICI Bank Limited |
| General Insurance vs. Kingfa Science Technology | General Insurance vs. Rico Auto Industries | General Insurance vs. GACM Technologies Limited | General Insurance vs. COSMO FIRST 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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