Correlation Between State Bank and Asian Paints
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Asian Paints Limited, you can compare the effects of market volatilities on State Bank and Asian Paints 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 Asian Paints. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Asian Paints.
Diversification Opportunities for State Bank and Asian Paints
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Asian is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Asian Paints Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Paints Limited 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 Asian Paints. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Paints Limited has no effect on the direction of State Bank i.e., State Bank and Asian Paints go up and down completely randomly.
Pair Corralation between State Bank and Asian Paints
Assuming the 90 days trading horizon State Bank of is expected to generate 1.01 times more return on investment than Asian Paints. However, State Bank is 1.01 times more volatile than Asian Paints Limited. It trades about 0.09 of its potential returns per unit of risk. Asian Paints Limited is currently generating about -0.4 per unit of risk. If you would invest 78,790 in State Bank of on August 31, 2024 and sell it today you would earn a total of 5,095 from holding State Bank of or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
State Bank of vs. Asian Paints Limited
Performance |
| Timeline |
| State Bank |
| Asian Paints Limited |
State Bank and Asian Paints Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Asian Paints
The main advantage of trading using opposite State Bank and Asian Paints positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Asian Paints 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 Asian Paints will offset losses from the drop in Asian Paints' long position.| State Bank vs. Hisar Metal Industries | State Bank vs. Ratnamani Metals Tubes | State Bank vs. Landmark Cars Limited | State Bank vs. Hindustan Foods Limited |
| Asian Paints vs. LLOYDS METALS AND | Asian Paints vs. Hindustan Media Ventures | Asian Paints vs. Ankit Metal Power | Asian Paints vs. Sambhaav Media 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |