Correlation Between State Bank and Centum Electronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Centum Electronics Limited, you can compare the effects of market volatilities on State Bank and Centum Electronics 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 Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Centum Electronics.
Diversification Opportunities for State Bank and Centum Electronics
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Centum is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics 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 Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of State Bank i.e., State Bank and Centum Electronics go up and down completely randomly.
Pair Corralation between State Bank and Centum Electronics
Assuming the 90 days trading horizon State Bank of is expected to generate 0.77 times more return on investment than Centum Electronics. However, State Bank of is 1.3 times less risky than Centum Electronics. It trades about 0.11 of its potential returns per unit of risk. Centum Electronics Limited is currently generating about -0.04 per unit of risk. If you would invest 78,095 in State Bank of on August 26, 2024 and sell it today you would earn a total of 3,510 from holding State Bank of or generate 4.49% 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. Centum Electronics Limited
Performance |
| Timeline |
| State Bank |
| Centum Electronics |
State Bank and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Centum Electronics
The main advantage of trading using opposite State Bank and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Centum Electronics 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 Centum Electronics will offset losses from the drop in Centum Electronics' long position.| State Bank vs. Le Travenues Technology | State Bank vs. Kaynes Technology India | State Bank vs. FCS Software Solutions | State Bank vs. UTI Asset Management |
| Centum Electronics vs. Life Insurance | Centum Electronics vs. Power Finance | Centum Electronics vs. HDFC Bank Limited | Centum Electronics 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |