Correlation Between CSB Bank and State Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between CSB Bank Limited and State Bank of, you can compare the effects of market volatilities on CSB Bank 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 CSB Bank with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and State Bank.
Diversification Opportunities for CSB Bank and State Bank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSB and State is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank 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 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 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 CSB Bank i.e., CSB Bank and State Bank go up and down completely randomly.
Pair Corralation between CSB Bank and State Bank
Assuming the 90 days trading horizon CSB Bank Limited is expected to under-perform the State Bank. But the stock apears to be less risky and, when comparing its historical volatility, CSB Bank Limited is 1.2 times less risky than State Bank. The stock trades about -0.06 of its potential returns per unit of risk. The State Bank of is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 81,505 in State Bank of on August 25, 2024 and sell it today you would earn a total of 100.00 from holding State Bank of or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSB Bank Limited vs. State Bank of
Performance |
| Timeline |
| CSB Bank Limited |
| State Bank |
CSB Bank and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and State Bank
The main advantage of trading using opposite CSB Bank and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank 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.| CSB Bank vs. Sarveshwar Foods Limited | CSB Bank vs. Ortel Communications Limited | CSB Bank vs. Spencers Retail Limited | CSB Bank vs. Uniinfo Telecom Services |
| State Bank vs. Max Financial Services | State Bank vs. Geojit Financial Services | State Bank vs. Datamatics Global Services | State Bank vs. Chalet Hotels 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |