Correlation Between JSW Energy and State Bank
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By analyzing existing cross correlation between JSW Energy Limited and State Bank of, you can compare the effects of market volatilities on JSW Energy 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 JSW Energy with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Energy and State Bank.
Diversification Opportunities for JSW Energy and State Bank
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSW and State is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding JSW Energy 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 JSW Energy 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 JSW Energy 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 JSW Energy i.e., JSW Energy and State Bank go up and down completely randomly.
Pair Corralation between JSW Energy and State Bank
Assuming the 90 days trading horizon JSW Energy Limited is expected to under-perform the State Bank. In addition to that, JSW Energy is 1.94 times more volatile than State Bank of. It trades about -0.31 of its total potential returns per unit of risk. State Bank of is currently generating about -0.22 per unit of volatility. If you would invest 81,200 in State Bank of on October 21, 2024 and sell it today you would lose (4,790) from holding State Bank of or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Energy Limited vs. State Bank of
Performance |
| Timeline |
| JSW Energy Limited |
| State Bank |
JSW Energy and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Energy and State Bank
The main advantage of trading using opposite JSW Energy and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Energy 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.| JSW Energy vs. State Bank of | JSW Energy vs. Life Insurance | JSW Energy vs. HDFC Bank Limited | JSW Energy vs. ICICI Bank 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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