Correlation Between Yes Bank and Parag Milk
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By analyzing existing cross correlation between Yes Bank Limited and Parag Milk Foods, you can compare the effects of market volatilities on Yes Bank and Parag Milk 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 Parag Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Parag Milk.
Diversification Opportunities for Yes Bank and Parag Milk
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and Parag is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Parag Milk Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parag Milk Foods 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 Parag Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parag Milk Foods has no effect on the direction of Yes Bank i.e., Yes Bank and Parag Milk go up and down completely randomly.
Pair Corralation between Yes Bank and Parag Milk
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 0.86 times more return on investment than Parag Milk. However, Yes Bank Limited is 1.16 times less risky than Parag Milk. It trades about -0.02 of its potential returns per unit of risk. Parag Milk Foods is currently generating about -0.14 per unit of risk. If you would invest 1,959 in Yes Bank Limited on November 3, 2024 and sell it today you would lose (36.00) from holding Yes Bank Limited or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. Parag Milk Foods
Performance |
| Timeline |
| Yes Bank Limited |
| Parag Milk Foods |
Yes Bank and Parag Milk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Parag Milk
The main advantage of trading using opposite Yes Bank and Parag Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Parag Milk 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 Parag Milk will offset losses from the drop in Parag Milk's long position.| Yes Bank vs. MRF Limited | Yes Bank vs. Bosch Limited | Yes Bank vs. Vardhman Holdings Limited | Yes Bank vs. Bajaj Holdings Investment |
| Parag Milk vs. Tata Investment | Parag Milk vs. Navneet Education Limited | Parag Milk vs. Golden Tobacco Limited | Parag Milk vs. The Investment Trust |
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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