Correlation Between State Bank and Arman Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Arman Financial Services, you can compare the effects of market volatilities on State Bank and Arman Financial 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 Arman Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Arman Financial.
Diversification Opportunities for State Bank and Arman Financial
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and Arman is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Arman Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arman Financial Services 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 Arman Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arman Financial Services has no effect on the direction of State Bank i.e., State Bank and Arman Financial go up and down completely randomly.
Pair Corralation between State Bank and Arman Financial
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Arman Financial. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 2.49 times less risky than Arman Financial. The stock trades about -0.08 of its potential returns per unit of risk. The Arman Financial Services is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 125,165 in Arman Financial Services on November 4, 2024 and sell it today you would earn a total of 15,145 from holding Arman Financial Services or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Arman Financial Services
Performance |
| Timeline |
| State Bank |
| Arman Financial Services |
State Bank and Arman Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Arman Financial
The main advantage of trading using opposite State Bank and Arman Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Arman Financial 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 Arman Financial will offset losses from the drop in Arman Financial's long position.| State Bank vs. Aarti Drugs Limited | State Bank vs. SANOFI S HEALTHC | State Bank vs. Apollo Hospitals Enterprise | State Bank vs. Zota Health Care |
| Arman Financial vs. One 97 Communications | Arman Financial vs. Kamat Hotels Limited | Arman Financial vs. EIH Associated Hotels | Arman Financial vs. Usha Martin Education |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |