Correlation Between Yes Bank and Karnataka Bank
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By analyzing existing cross correlation between Yes Bank Limited and The Karnataka Bank, you can compare the effects of market volatilities on Yes Bank and Karnataka 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 Karnataka Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Karnataka Bank.
Diversification Opportunities for Yes Bank and Karnataka Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yes and Karnataka is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and The Karnataka Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karnataka 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 Karnataka Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karnataka Bank has no effect on the direction of Yes Bank i.e., Yes Bank and Karnataka Bank go up and down completely randomly.
Pair Corralation between Yes Bank and Karnataka Bank
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 1.34 times more return on investment than Karnataka Bank. However, Yes Bank is 1.34 times more volatile than The Karnataka Bank. It trades about -0.04 of its potential returns per unit of risk. The Karnataka Bank is currently generating about -0.06 per unit of risk. If you would invest 2,072 in Yes Bank Limited on August 31, 2024 and sell it today you would lose (36.00) from holding Yes Bank Limited or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Yes Bank Limited vs. The Karnataka Bank
Performance |
| Timeline |
| Yes Bank Limited |
| Karnataka Bank |
Yes Bank and Karnataka Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Karnataka Bank
The main advantage of trading using opposite Yes Bank and Karnataka Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Karnataka 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 Karnataka Bank will offset losses from the drop in Karnataka Bank's long position.| Yes Bank vs. ADF Foods Limited | Yes Bank vs. Iris Clothings Limited | Yes Bank vs. Zodiac Clothing | Yes Bank vs. Hindustan Foods Limited |
| Karnataka Bank vs. Hisar Metal Industries | Karnataka Bank vs. Ankit Metal Power | Karnataka Bank vs. Par Drugs And | Karnataka Bank vs. Hilton Metal Forging |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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