Correlation Between State Bank and EIH Associated
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and EIH Associated Hotels, you can compare the effects of market volatilities on State Bank and EIH Associated 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 EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and EIH Associated.
Diversification Opportunities for State Bank and EIH Associated
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and EIH is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated Hotels 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 EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of State Bank i.e., State Bank and EIH Associated go up and down completely randomly.
Pair Corralation between State Bank and EIH Associated
Assuming the 90 days trading horizon State Bank of is expected to generate 0.45 times more return on investment than EIH Associated. However, State Bank of is 2.22 times less risky than EIH Associated. It trades about -0.01 of its potential returns per unit of risk. EIH Associated Hotels is currently generating about -0.12 per unit of risk. If you would invest 77,640 in State Bank of on November 7, 2024 and sell it today you would lose (350.00) from holding State Bank of or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. EIH Associated Hotels
Performance |
| Timeline |
| State Bank |
| EIH Associated Hotels |
State Bank and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and EIH Associated
The main advantage of trading using opposite State Bank and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| State Bank vs. AUTHUM INVESTMENT INFRASTRUCTU | State Bank vs. SIL Investments Limited | State Bank vs. Tube Investments of | State Bank vs. Bombay Burmah Trading |
| EIH Associated vs. Consolidated Construction Consortium | EIH Associated vs. Biofil Chemicals Pharmaceuticals | EIH Associated vs. Refex Industries Limited | EIH Associated vs. Kingfa Science Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |