Correlation Between Yes Bank and Premier Polyfilm
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By analyzing existing cross correlation between Yes Bank Limited and Premier Polyfilm Limited, you can compare the effects of market volatilities on Yes Bank and Premier Polyfilm 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 Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Premier Polyfilm.
Diversification Opportunities for Yes Bank and Premier Polyfilm
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yes and Premier is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm 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 Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of Yes Bank i.e., Yes Bank and Premier Polyfilm go up and down completely randomly.
Pair Corralation between Yes Bank and Premier Polyfilm
Assuming the 90 days trading horizon Yes Bank Limited is expected to under-perform the Premier Polyfilm. But the stock apears to be less risky and, when comparing its historical volatility, Yes Bank Limited is 1.5 times less risky than Premier Polyfilm. The stock trades about -0.22 of its potential returns per unit of risk. The Premier Polyfilm Limited is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 7,463 in Premier Polyfilm Limited on October 20, 2024 and sell it today you would lose (508.00) from holding Premier Polyfilm Limited or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Bank Limited vs. Premier Polyfilm Limited
Performance |
| Timeline |
| Yes Bank Limited |
| Premier Polyfilm |
Yes Bank and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Premier Polyfilm
The main advantage of trading using opposite Yes Bank and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| Yes Bank vs. Music Broadcast Limited | Yes Bank vs. Chalet Hotels Limited | Yes Bank vs. Popular Vehicles and | Yes Bank vs. Generic Engineering Construction |
| Premier Polyfilm vs. NMDC Limited | Premier Polyfilm vs. Steel Authority of | Premier Polyfilm vs. Embassy Office Parks | Premier Polyfilm vs. Jai Balaji Industries |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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