Correlation Between Samhi Hotels and State Bank
Can any of the company-specific risk be diversified away by investing in both Samhi Hotels and State Bank 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 Samhi Hotels and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samhi Hotels Limited and State Bank of, you can compare the effects of market volatilities on Samhi Hotels 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 Samhi Hotels with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samhi Hotels and State Bank.
Diversification Opportunities for Samhi Hotels and State Bank
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samhi and State is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samhi Hotels 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 Samhi Hotels 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 Samhi Hotels 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 Samhi Hotels i.e., Samhi Hotels and State Bank go up and down completely randomly.
Pair Corralation between Samhi Hotels and State Bank
Assuming the 90 days trading horizon Samhi Hotels Limited is expected to under-perform the State Bank. In addition to that, Samhi Hotels is 2.3 times more volatile than State Bank of. It trades about -0.19 of its total potential returns per unit of risk. State Bank of is currently generating about -0.01 per unit of volatility. If you would invest 77,640 in State Bank of on November 6, 2024 and sell it today you would lose (350.00) from holding State Bank of or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samhi Hotels Limited vs. State Bank of
Performance |
| Timeline |
| Samhi Hotels Limited |
| State Bank |
Samhi Hotels and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samhi Hotels and State Bank
The main advantage of trading using opposite Samhi Hotels and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samhi Hotels 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.| Samhi Hotels vs. Consolidated Construction Consortium | Samhi Hotels vs. Biofil Chemicals Pharmaceuticals | Samhi Hotels vs. Refex Industries Limited | Samhi Hotels vs. Kingfa Science Technology |
| State Bank vs. PB Fintech Limited | State Bank vs. PNC Infratech Limited | State Bank vs. Orient Technologies Limited | State Bank vs. ZF Commercial Vehicle |
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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