Correlation Between Golden Tobacco and State Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Golden Tobacco Limited and State Bank of, you can compare the effects of market volatilities on Golden Tobacco 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 Golden Tobacco with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and State Bank.
Diversification Opportunities for Golden Tobacco and State Bank
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and State is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco i.e., Golden Tobacco and State Bank go up and down completely randomly.
Pair Corralation between Golden Tobacco and State Bank
Assuming the 90 days trading horizon Golden Tobacco Limited is expected to under-perform the State Bank. In addition to that, Golden Tobacco is 1.37 times more volatile than State Bank of. It trades about -0.03 of its total potential returns per unit of risk. State Bank of is currently generating about 0.08 per unit of volatility. If you would invest 63,691 in State Bank of on September 12, 2024 and sell it today you would earn a total of 23,059 from holding State Bank of or generate 36.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Golden Tobacco Limited vs. State Bank of
Performance |
| Timeline |
| Golden Tobacco |
| State Bank |
Golden Tobacco and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and State Bank
The main advantage of trading using opposite Golden Tobacco and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco 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.| Golden Tobacco vs. Indo Borax Chemicals | Golden Tobacco vs. Kingfa Science Technology | Golden Tobacco vs. Alkali Metals Limited | Golden Tobacco vs. Krebs Biochemicals and |
| State Bank vs. Aster DM Healthcare | State Bank vs. Metropolis Healthcare Limited | State Bank vs. Bajaj Healthcare Limited | State Bank vs. V2 Retail 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |