Correlation Between CSB Bank and Electrosteel Castings
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By analyzing existing cross correlation between CSB Bank Limited and Electrosteel Castings Limited, you can compare the effects of market volatilities on CSB Bank and Electrosteel Castings 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 CSB Bank with a short position of Electrosteel Castings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Electrosteel Castings.
Diversification Opportunities for CSB Bank and Electrosteel Castings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CSB and Electrosteel is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Electrosteel Castings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrosteel Castings and CSB 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 CSB Bank Limited are associated (or correlated) with Electrosteel Castings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrosteel Castings has no effect on the direction of CSB Bank i.e., CSB Bank and Electrosteel Castings go up and down completely randomly.
Pair Corralation between CSB Bank and Electrosteel Castings
Assuming the 90 days trading horizon CSB Bank Limited is expected to generate 0.52 times more return on investment than Electrosteel Castings. However, CSB Bank Limited is 1.91 times less risky than Electrosteel Castings. It trades about -0.03 of its potential returns per unit of risk. Electrosteel Castings Limited is currently generating about -0.15 per unit of risk. If you would invest 32,335 in CSB Bank Limited on November 2, 2024 and sell it today you would lose (2,050) from holding CSB Bank Limited or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.05% |
| Values | Daily Returns |
CSB Bank Limited vs. Electrosteel Castings Limited
Performance |
| Timeline |
| CSB Bank Limited |
| Electrosteel Castings |
CSB Bank and Electrosteel Castings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and Electrosteel Castings
The main advantage of trading using opposite CSB Bank and Electrosteel Castings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Electrosteel Castings 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 Electrosteel Castings will offset losses from the drop in Electrosteel Castings' long position.| CSB Bank vs. Bodhi Tree Multimedia | CSB Bank vs. Spencers Retail Limited | CSB Bank vs. Next Mediaworks Limited | CSB Bank vs. Radiant Cash Management |
| Electrosteel Castings vs. Patanjali Foods Limited | Electrosteel Castings vs. ADF Foods Limited | Electrosteel Castings vs. Parag Milk Foods | Electrosteel Castings vs. Bombay Burmah Trading |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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