Correlation Between Max Financial and CSB Bank
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By analyzing existing cross correlation between Max Financial Services and CSB Bank Limited, you can compare the effects of market volatilities on Max Financial and CSB 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 Max Financial with a short position of CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and CSB Bank.
Diversification Opportunities for Max Financial and CSB Bank
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Max and CSB is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank Limited and Max Financial 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 Max Financial Services are associated (or correlated) with CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of Max Financial i.e., Max Financial and CSB Bank go up and down completely randomly.
Pair Corralation between Max Financial and CSB Bank
Assuming the 90 days trading horizon Max Financial Services is expected to under-perform the CSB Bank. In addition to that, Max Financial is 1.35 times more volatile than CSB Bank Limited. It trades about -0.34 of its total potential returns per unit of risk. CSB Bank Limited is currently generating about -0.07 per unit of volatility. If you would invest 31,400 in CSB Bank Limited on September 1, 2024 and sell it today you would lose (645.00) from holding CSB Bank Limited or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Max Financial Services vs. CSB Bank Limited
Performance |
| Timeline |
| Max Financial Services |
| CSB Bank Limited |
Max Financial and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and CSB Bank
The main advantage of trading using opposite Max Financial and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, CSB 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| Max Financial vs. Sukhjit Starch Chemicals | Max Financial vs. Mangalore Chemicals Fertilizers | Max Financial vs. Steel Authority of | Max Financial vs. Neogen Chemicals Limited |
| CSB Bank vs. Ankit Metal Power | CSB Bank vs. United Drilling Tools | CSB Bank vs. Akme Fintrade India | CSB Bank vs. Shivalik Bimetal Controls |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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