Correlation Between Gujarat Ambuja and State Bank
Can any of the company-specific risk be diversified away by investing in both Gujarat Ambuja 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 Gujarat Ambuja and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gujarat Ambuja Exports and State Bank of, you can compare the effects of market volatilities on Gujarat Ambuja 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 Gujarat Ambuja with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Ambuja and State Bank.
Diversification Opportunities for Gujarat Ambuja and State Bank
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gujarat and State is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Ambuja Exports and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Gujarat Ambuja 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 Gujarat Ambuja Exports 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 Gujarat Ambuja i.e., Gujarat Ambuja and State Bank go up and down completely randomly.
Pair Corralation between Gujarat Ambuja and State Bank
Assuming the 90 days trading horizon Gujarat Ambuja Exports is expected to under-perform the State Bank. In addition to that, Gujarat Ambuja is 1.7 times more volatile than State Bank of. It trades about -0.08 of its total potential returns per unit of risk. State Bank of is currently generating about -0.04 per unit of volatility. If you would invest 82,480 in State Bank of on November 2, 2024 and sell it today you would lose (6,220) from holding State Bank of or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gujarat Ambuja Exports vs. State Bank of
Performance |
| Timeline |
| Gujarat Ambuja Exports |
| State Bank |
Gujarat Ambuja and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Ambuja and State Bank
The main advantage of trading using opposite Gujarat Ambuja and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Ambuja 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.| Gujarat Ambuja vs. Gangotri Textiles Limited | Gujarat Ambuja vs. Hemisphere Properties India | Gujarat Ambuja vs. Kingfa Science Technology | Gujarat Ambuja vs. Rico Auto Industries |
| State Bank vs. Country Club Hospitality | State Bank vs. MEDI ASSIST HEALTHCARE | State Bank vs. LT Foods Limited | State Bank vs. Megastar Foods 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |