Correlation Between DBS Group and State Bank
Can any of the company-specific risk be diversified away by investing in both DBS Group and State Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DBS Group and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBS Group Holdings and State Bank of, you can compare the effects of market volatilities on DBS Group 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 DBS Group with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBS Group and State Bank.
Diversification Opportunities for DBS Group and State Bank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DBS and State is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding DBS Group Holdings and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and DBS Group 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 DBS Group Holdings 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 DBS Group i.e., DBS Group and State Bank go up and down completely randomly.
Pair Corralation between DBS Group and State Bank
Assuming the 90 days trading horizon DBS Group is expected to generate 1.23 times less return on investment than State Bank. But when comparing it to its historical volatility, DBS Group Holdings is 1.22 times less risky than State Bank. It trades about 0.19 of its potential returns per unit of risk. State Bank of is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 8,500 in State Bank of on August 29, 2024 and sell it today you would earn a total of 900.00 from holding State Bank of or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DBS Group Holdings vs. State Bank of
Performance |
| Timeline |
| DBS Group Holdings |
| State Bank |
DBS Group and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBS Group and State Bank
The main advantage of trading using opposite DBS Group and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBS Group 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.| DBS Group vs. Cleanaway Waste Management | DBS Group vs. Pebblebrook Hotel Trust | DBS Group vs. COFCO Joycome Foods | DBS Group vs. Lifeway Foods |
| State Bank vs. GEELY AUTOMOBILE | State Bank vs. Global Ship Lease | State Bank vs. Sporttotal AG | State Bank vs. CARSALESCOM |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |