Correlation Between Great Eastern and State Bank
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By analyzing existing cross correlation between The Great Eastern and State Bank of, you can compare the effects of market volatilities on Great Eastern 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 Great Eastern with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Eastern and State Bank.
Diversification Opportunities for Great Eastern and State Bank
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and State is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Great Eastern and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Great Eastern 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 The Great Eastern 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 Great Eastern i.e., Great Eastern and State Bank go up and down completely randomly.
Pair Corralation between Great Eastern and State Bank
Assuming the 90 days trading horizon The Great Eastern is expected to generate 2.46 times more return on investment than State Bank. However, Great Eastern is 2.46 times more volatile than State Bank of. It trades about -0.05 of its potential returns per unit of risk. State Bank of is currently generating about -0.22 per unit of risk. If you would invest 99,330 in The Great Eastern on October 21, 2024 and sell it today you would lose (4,115) from holding The Great Eastern or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Great Eastern vs. State Bank of
Performance |
| Timeline |
| Great Eastern |
| State Bank |
Great Eastern and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Eastern and State Bank
The main advantage of trading using opposite Great Eastern and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Eastern 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.| Great Eastern vs. State Bank of | Great Eastern vs. Reliance Industries Limited | Great Eastern vs. HDFC Bank Limited | Great Eastern vs. Tata Motors Limited |
| State Bank vs. Pritish Nandy Communications | State Bank vs. SIL Investments Limited | State Bank vs. AUTHUM INVESTMENT INFRASTRUCTU | State Bank vs. Styrenix Performance Materials |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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