Correlation Between State Bank and CSB Bank
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By analyzing existing cross correlation between State Bank of and CSB Bank Limited, you can compare the effects of market volatilities on State Bank and CSB Bank 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 CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and CSB Bank.
Diversification Opportunities for State Bank and CSB Bank
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and CSB is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank 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 CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of State Bank i.e., State Bank and CSB Bank go up and down completely randomly.
Pair Corralation between State Bank and CSB Bank
Assuming the 90 days trading horizon State Bank of is expected to generate 1.72 times more return on investment than CSB Bank. However, State Bank is 1.72 times more volatile than CSB Bank Limited. It trades about 0.14 of its potential returns per unit of risk. CSB Bank Limited is currently generating about -0.04 per unit of risk. If you would invest 79,205 in State Bank of on August 29, 2024 and sell it today you would earn a total of 4,735 from holding State Bank of or generate 5.98% 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. CSB Bank Limited
Performance |
| Timeline |
| State Bank |
| CSB Bank Limited |
State Bank and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and CSB Bank
The main advantage of trading using opposite State Bank and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, CSB Bank 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| State Bank vs. MRF Limited | State Bank vs. JSW Holdings Limited | State Bank vs. Maharashtra Scooters Limited | State Bank vs. Nalwa Sons Investments |
| CSB Bank vs. MRF Limited | CSB Bank vs. JSW Holdings Limited | CSB Bank vs. Maharashtra Scooters Limited | CSB Bank vs. Nalwa Sons Investments |
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.
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