Correlation Between CREDITACCESS GRAMEEN and State Bank
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and State Bank of, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and State Bank.
Diversification Opportunities for CREDITACCESS GRAMEEN and State Bank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDITACCESS and State is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED 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 CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and State Bank go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and State Bank
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 3.56 times more return on investment than State Bank. However, CREDITACCESS GRAMEEN is 3.56 times more volatile than State Bank of. It trades about 0.16 of its potential returns per unit of risk. State Bank of is currently generating about -0.04 per unit of risk. If you would invest 91,110 in CREDITACCESS GRAMEEN LIMITED on November 8, 2024 and sell it today you would earn a total of 16,590 from holding CREDITACCESS GRAMEEN LIMITED or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. State Bank of
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| State Bank |
CREDITACCESS GRAMEEN and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and State Bank
The main advantage of trading using opposite CREDITACCESS GRAMEEN and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN 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.| CREDITACCESS GRAMEEN vs. Future Retail Limited | CREDITACCESS GRAMEEN vs. Akme Fintrade India | CREDITACCESS GRAMEEN vs. Fine Organic Industries | CREDITACCESS GRAMEEN vs. Hindustan Foods Limited |
| State Bank vs. NRB Industrial Bearings | State Bank vs. Silgo Retail Limited | State Bank vs. Ratnamani Metals Tubes | State Bank vs. Newgen Software Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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