Correlation Between State Bank and Team Internet
Can any of the company-specific risk be diversified away by investing in both State Bank and Team Internet 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 State Bank and Team Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and Team Internet Group, you can compare the effects of market volatilities on State Bank and Team Internet 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 State Bank with a short position of Team Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Team Internet.
Diversification Opportunities for State Bank and Team Internet
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Team is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Team Internet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Internet Group and State 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 State Bank of are associated (or correlated) with Team Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Internet Group has no effect on the direction of State Bank i.e., State Bank and Team Internet go up and down completely randomly.
Pair Corralation between State Bank and Team Internet
Assuming the 90 days trading horizon State Bank of is expected to generate 0.65 times more return on investment than Team Internet. However, State Bank of is 1.53 times less risky than Team Internet. It trades about 0.06 of its potential returns per unit of risk. Team Internet Group is currently generating about -0.02 per unit of risk. If you would invest 6,863 in State Bank of on August 27, 2024 and sell it today you would earn a total of 2,787 from holding State Bank of or generate 40.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Team Internet Group
Performance |
| Timeline |
| State Bank |
| Team Internet Group |
State Bank and Team Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Team Internet
The main advantage of trading using opposite State Bank and Team Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Team Internet 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 Team Internet will offset losses from the drop in Team Internet's long position.| State Bank vs. Kinnevik Investment AB | State Bank vs. EVS Broadcast Equipment | State Bank vs. Jupiter Fund Management | State Bank vs. Bankers Investment Trust |
| Team Internet vs. Toyota Motor Corp | Team Internet vs. SoftBank Group Corp | Team Internet vs. Fannie Mae | Team Internet vs. State Bank of |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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