Correlation Between Yes Bank and Patanjali Foods
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By analyzing existing cross correlation between Yes Bank Limited and Patanjali Foods Limited, you can compare the effects of market volatilities on Yes Bank and Patanjali Foods 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 Patanjali Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Patanjali Foods.
Diversification Opportunities for Yes Bank and Patanjali Foods
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yes and Patanjali is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Patanjali Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patanjali 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 Patanjali Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patanjali Foods has no effect on the direction of Yes Bank i.e., Yes Bank and Patanjali Foods go up and down completely randomly.
Pair Corralation between Yes Bank and Patanjali Foods
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 1.68 times more return on investment than Patanjali Foods. However, Yes Bank is 1.68 times more volatile than Patanjali Foods Limited. It trades about 0.06 of its potential returns per unit of risk. Patanjali Foods Limited is currently generating about -0.06 per unit of risk. If you would invest 1,877 in Yes Bank Limited on November 9, 2024 and sell it today you would earn a total of 51.00 from holding Yes Bank Limited or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. Patanjali Foods Limited
Performance |
| Timeline |
| Yes Bank Limited |
| Patanjali Foods |
Yes Bank and Patanjali Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Patanjali Foods
The main advantage of trading using opposite Yes Bank and Patanjali Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Patanjali Foods 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 Patanjali Foods will offset losses from the drop in Patanjali Foods' long position.| Yes Bank vs. Infomedia Press Limited | Yes Bank vs. Eros International Media | Yes Bank vs. Bharatiya Global Infomedia | Yes Bank vs. Silver Touch Technologies |
| Patanjali Foods vs. Lakshmi Finance Industrial | Patanjali Foods vs. Elgi Rubber | Patanjali Foods vs. Alkali Metals Limited | Patanjali Foods vs. Sarthak Metals 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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