Correlation Between HDFC Bank and Socit Gnrale
Can any of the company-specific risk be diversified away by investing in both HDFC Bank and Socit Gnrale 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 HDFC Bank and Socit Gnrale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HDFC Bank Limited and Socit Gnrale Socit, you can compare the effects of market volatilities on HDFC Bank and Socit Gnrale 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 HDFC Bank with a short position of Socit Gnrale. Check out your portfolio center. Please also check ongoing floating volatility patterns of HDFC Bank and Socit Gnrale.
Diversification Opportunities for HDFC Bank and Socit Gnrale
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HDFC and Socit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HDFC Bank Limited and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and HDFC 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 HDFC Bank Limited are associated (or correlated) with Socit Gnrale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of HDFC Bank i.e., HDFC Bank and Socit Gnrale go up and down completely randomly.
Pair Corralation between HDFC Bank and Socit Gnrale
Considering the 90-day investment horizon HDFC Bank Limited is expected to under-perform the Socit Gnrale. But the stock apears to be less risky and, when comparing its historical volatility, HDFC Bank Limited is 1.49 times less risky than Socit Gnrale. The stock trades about -0.12 of its potential returns per unit of risk. The Socit Gnrale Socit is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,650 in Socit Gnrale Socit on October 24, 2024 and sell it today you would earn a total of 455.00 from holding Socit Gnrale Socit or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HDFC Bank Limited vs. Socit Gnrale Socit
Performance |
| Timeline |
| HDFC Bank Limited |
| Socit Gnrale Socit |
HDFC Bank and Socit Gnrale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HDFC Bank and Socit Gnrale
The main advantage of trading using opposite HDFC Bank and Socit Gnrale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HDFC Bank position performs unexpectedly, Socit Gnrale 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 Socit Gnrale will offset losses from the drop in Socit Gnrale's long position.| HDFC Bank vs. US Bancorp | HDFC Bank vs. Banco Santander Brasil | HDFC Bank vs. Shinhan Financial Group | HDFC Bank vs. First Bancorp |
| Socit Gnrale vs. Banco Bradesco SA | Socit Gnrale vs. Itau Unibanco Banco | Socit Gnrale vs. Lloyds Banking Group | Socit Gnrale vs. Deutsche Bank AG |
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.
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