Correlation Between Union Bank and Great Eastern
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By analyzing existing cross correlation between Union Bank of and The Great Eastern, you can compare the effects of market volatilities on Union Bank and Great Eastern 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 Union Bank with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Great Eastern.
Diversification Opportunities for Union Bank and Great Eastern
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Great is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern and Union 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 Union Bank of are associated (or correlated) with Great Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Eastern has no effect on the direction of Union Bank i.e., Union Bank and Great Eastern go up and down completely randomly.
Pair Corralation between Union Bank and Great Eastern
Assuming the 90 days trading horizon Union Bank of is expected to generate 1.03 times more return on investment than Great Eastern. However, Union Bank is 1.03 times more volatile than The Great Eastern. It trades about 0.04 of its potential returns per unit of risk. The Great Eastern is currently generating about 0.03 per unit of risk. If you would invest 11,600 in Union Bank of on September 6, 2025 and sell it today you would earn a total of 3,730 from holding Union Bank of or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Bank of vs. The Great Eastern
Performance |
| Timeline |
| Union Bank |
| Great Eastern |
Union Bank and Great Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Great Eastern
The main advantage of trading using opposite Union Bank and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Great Eastern 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 Great Eastern will offset losses from the drop in Great Eastern's long position.| Union Bank vs. Shree Pushkar Chemicals | Union Bank vs. Star Health and | Union Bank vs. Dharani SugarsChemicals Limited | Union Bank vs. Hindcon Chemicals Limited |
| Great Eastern vs. Adroit Infotech Limited | Great Eastern vs. Arrow Greentech Limited | Great Eastern vs. LT Technology Services | Great Eastern vs. Usha Martin Education |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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