Correlation Between Yes Bank and MRF
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yes Bank Limited and MRF Limited, you can compare the effects of market volatilities on Yes Bank and MRF 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 MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and MRF.
Diversification Opportunities for Yes Bank and MRF
Very poor diversification
The 3 months correlation between Yes and MRF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF 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 MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Yes Bank i.e., Yes Bank and MRF go up and down completely randomly.
Pair Corralation between Yes Bank and MRF
Assuming the 90 days trading horizon Yes Bank Limited is expected to under-perform the MRF. In addition to that, Yes Bank is 1.54 times more volatile than MRF Limited. It trades about -0.05 of its total potential returns per unit of risk. MRF Limited is currently generating about 0.09 per unit of volatility. If you would invest 12,252,400 in MRF Limited on September 1, 2024 and sell it today you would earn a total of 272,700 from holding MRF Limited or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. MRF Limited
Performance |
| Timeline |
| Yes Bank Limited |
| MRF Limited |
Yes Bank and MRF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and MRF
The main advantage of trading using opposite Yes Bank and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.| Yes Bank vs. Dev Information Technology | Yes Bank vs. Sintex Plastics Technology | Yes Bank vs. Tamilnad Mercantile Bank | Yes Bank vs. Motilal Oswal Financial |
| MRF vs. Osia Hyper Retail | MRF vs. BF Utilities Limited | MRF vs. Sambhaav Media Limited | MRF vs. Touchwood Entertainment 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |