Correlation Between Arman Financial and State Bank
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By analyzing existing cross correlation between Arman Financial Services and State Bank of, you can compare the effects of market volatilities on Arman Financial and State Bank 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 Arman Financial with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arman Financial and State Bank.
Diversification Opportunities for Arman Financial and State Bank
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arman and State is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Arman Financial Services and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Arman Financial 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 Arman Financial Services are associated (or correlated) with State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Arman Financial i.e., Arman Financial and State Bank go up and down completely randomly.
Pair Corralation between Arman Financial and State Bank
Assuming the 90 days trading horizon Arman Financial Services is expected to generate 1.63 times more return on investment than State Bank. However, Arman Financial is 1.63 times more volatile than State Bank of. It trades about 0.0 of its potential returns per unit of risk. State Bank of is currently generating about -0.03 per unit of risk. If you would invest 146,595 in Arman Financial Services on October 25, 2024 and sell it today you would lose (2,835) from holding Arman Financial Services or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Arman Financial Services vs. State Bank of
Performance |
| Timeline |
| Arman Financial Services |
| State Bank |
Arman Financial and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arman Financial and State Bank
The main advantage of trading using opposite Arman Financial and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arman Financial position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Arman Financial vs. State Bank of | Arman Financial vs. Life Insurance | Arman Financial vs. HDFC Bank Limited | Arman Financial vs. ICICI Bank Limited |
| State Bank vs. Life Insurance | State Bank vs. HDFC Bank Limited | State Bank vs. ICICI Bank Limited | State Bank vs. Reliance Industries 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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