Correlation Between Yes Bank and Sterling
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By analyzing existing cross correlation between Yes Bank Limited and Sterling and Wilson, you can compare the effects of market volatilities on Yes Bank and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Sterling.
Diversification Opportunities for Yes Bank and Sterling
Very weak diversification
The 3 months correlation between Yes and Sterling is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of Yes Bank i.e., Yes Bank and Sterling go up and down completely randomly.
Pair Corralation between Yes Bank and Sterling
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 0.86 times more return on investment than Sterling. However, Yes Bank Limited is 1.16 times less risky than Sterling. It trades about 0.03 of its potential returns per unit of risk. Sterling and Wilson is currently generating about 0.02 per unit of risk. If you would invest 1,640 in Yes Bank Limited on November 6, 2024 and sell it today you would earn a total of 283.00 from holding Yes Bank Limited or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Yes Bank Limited vs. Sterling and Wilson
Performance |
| Timeline |
| Yes Bank Limited |
| Sterling and Wilson |
Yes Bank and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and Sterling
The main advantage of trading using opposite Yes Bank and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| Yes Bank vs. V2 Retail Limited | Yes Bank vs. Megastar Foods Limited | Yes Bank vs. Spencers Retail Limited | Yes Bank vs. Patanjali Foods Limited |
| Sterling vs. Dev Information Technology | Sterling vs. IOL Chemicals and | Sterling vs. Chambal Fertilizers Chemicals | Sterling vs. Mangalore Chemicals Fertilizers |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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