Correlation Between BAG Films and State Bank
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By analyzing existing cross correlation between BAG Films and and State Bank of, you can compare the effects of market volatilities on BAG Films 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 BAG Films with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAG Films and State Bank.
Diversification Opportunities for BAG Films and State Bank
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BAG and State is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BAG Films and and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and BAG Films 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 BAG Films and 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 BAG Films i.e., BAG Films and State Bank go up and down completely randomly.
Pair Corralation between BAG Films and State Bank
Assuming the 90 days trading horizon BAG Films and is expected to under-perform the State Bank. In addition to that, BAG Films is 2.5 times more volatile than State Bank of. It trades about -0.31 of its total potential returns per unit of risk. State Bank of is currently generating about -0.47 per unit of volatility. If you would invest 86,095 in State Bank of on October 17, 2024 and sell it today you would lose (10,725) from holding State Bank of or give up 12.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BAG Films and vs. State Bank of
Performance |
| Timeline |
| BAG Films |
| State Bank |
BAG Films and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAG Films and State Bank
The main advantage of trading using opposite BAG Films and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAG Films 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.| BAG Films vs. State Bank of | BAG Films vs. Life Insurance | BAG Films vs. HDFC Bank Limited | BAG Films vs. ICICI Bank Limited |
| State Bank vs. Sasken Technologies Limited | State Bank vs. Indian Metals Ferro | State Bank vs. Ratnamani Metals Tubes | State Bank vs. Agro Tech Foods |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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