Correlation Between CSB Bank and Steelcast
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By analyzing existing cross correlation between CSB Bank Limited and Steelcast Limited, you can compare the effects of market volatilities on CSB Bank and Steelcast 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 Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Steelcast.
Diversification Opportunities for CSB Bank and Steelcast
Very weak diversification
The 3 months correlation between CSB and Steelcast is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited 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 Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of CSB Bank i.e., CSB Bank and Steelcast go up and down completely randomly.
Pair Corralation between CSB Bank and Steelcast
Assuming the 90 days trading horizon CSB Bank Limited is expected to under-perform the Steelcast. But the stock apears to be less risky and, when comparing its historical volatility, CSB Bank Limited is 1.88 times less risky than Steelcast. The stock trades about -0.1 of its potential returns per unit of risk. The Steelcast Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 81,354 in Steelcast Limited on November 28, 2024 and sell it today you would earn a total of 856.00 from holding Steelcast Limited or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSB Bank Limited vs. Steelcast Limited
Performance |
| Timeline |
| CSB Bank Limited |
| Steelcast Limited |
CSB Bank and Steelcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSB Bank and Steelcast
The main advantage of trading using opposite CSB Bank and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.| CSB Bank vs. VA Tech Wabag | CSB Bank vs. Teamlease Services Limited | CSB Bank vs. Univa Foods Limited | CSB Bank vs. 63 moons technologies |
| Steelcast vs. Manali Petrochemicals Limited | Steelcast vs. Gujarat Fluorochemicals Limited | Steelcast vs. Chembond Chemicals | Steelcast vs. Dharani SugarsChemicals 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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