Correlation Between State Bank and Akums Drugs
Can any of the company-specific risk be diversified away by investing in both State Bank and Akums Drugs 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 Akums Drugs 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 Akums Drugs and, you can compare the effects of market volatilities on State Bank and Akums Drugs 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 Akums Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Akums Drugs.
Diversification Opportunities for State Bank and Akums Drugs
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Akums is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Akums Drugs and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akums Drugs 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 Akums Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akums Drugs has no effect on the direction of State Bank i.e., State Bank and Akums Drugs go up and down completely randomly.
Pair Corralation between State Bank and Akums Drugs
Assuming the 90 days trading horizon State Bank of is expected to generate 0.5 times more return on investment than Akums Drugs. However, State Bank of is 2.02 times less risky than Akums Drugs. It trades about -0.12 of its potential returns per unit of risk. Akums Drugs and is currently generating about -0.36 per unit of risk. If you would invest 84,445 in State Bank of on September 24, 2024 and sell it today you would lose (2,330) from holding State Bank of or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
State Bank of vs. Akums Drugs and
Performance |
| Timeline |
| State Bank |
| Akums Drugs |
State Bank and Akums Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Akums Drugs
The main advantage of trading using opposite State Bank and Akums Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Akums Drugs 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 Akums Drugs will offset losses from the drop in Akums Drugs' long position.| State Bank vs. TECIL Chemicals and | State Bank vs. HDFC Life Insurance | State Bank vs. Chembond Chemicals | State Bank vs. Tata Chemicals Limited |
| Akums Drugs vs. Shivalik Bimetal Controls | Akums Drugs vs. Baazar Style Retail | Akums Drugs vs. Aarti Drugs Limited | Akums Drugs vs. Hindustan Copper Limited |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance |