Correlation Between CSB Bank and Hilton Metal
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By analyzing existing cross correlation between CSB Bank Limited and Hilton Metal Forging, you can compare the effects of market volatilities on CSB Bank and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Hilton Metal.
Diversification Opportunities for CSB Bank and Hilton Metal
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSB and Hilton is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of CSB Bank i.e., CSB Bank and Hilton Metal go up and down completely randomly.
Pair Corralation between CSB Bank and Hilton Metal
Assuming the 90 days trading horizon CSB Bank Limited is expected to generate 0.5 times more return on investment than Hilton Metal. However, CSB Bank Limited is 2.0 times less risky than Hilton Metal. It trades about -0.13 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about -0.22 per unit of risk. If you would invest 32,035 in CSB Bank Limited on November 2, 2024 and sell it today you would lose (1,750) from holding CSB Bank Limited or give up 5.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CSB Bank Limited vs. Hilton Metal Forging
Performance |
| Timeline |
| CSB Bank Limited |
| Hilton Metal Forging |
CSB Bank and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and Hilton Metal
The main advantage of trading using opposite CSB Bank and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's 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 |
| Hilton Metal vs. Cantabil Retail India | Hilton Metal vs. KNR Constructions Limited | Hilton Metal vs. Silgo Retail Limited | Hilton Metal vs. Baazar Style Retail |
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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