Correlation Between State Bank and Eros International
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By analyzing existing cross correlation between State Bank of and Eros International Media, you can compare the effects of market volatilities on State Bank and Eros International 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 Eros International. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Eros International.
Diversification Opportunities for State Bank and Eros International
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Eros is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Eros International Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eros International Media 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 Eros International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eros International Media has no effect on the direction of State Bank i.e., State Bank and Eros International go up and down completely randomly.
Pair Corralation between State Bank and Eros International
Assuming the 90 days trading horizon State Bank of is expected to generate 0.65 times more return on investment than Eros International. However, State Bank of is 1.55 times less risky than Eros International. It trades about 0.17 of its potential returns per unit of risk. Eros International Media is currently generating about -0.03 per unit of risk. If you would invest 80,865 in State Bank of on September 14, 2024 and sell it today you would earn a total of 4,505 from holding State Bank of or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Eros International Media
Performance |
| Timeline |
| State Bank |
| Eros International Media |
State Bank and Eros International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Eros International
The main advantage of trading using opposite State Bank and Eros International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Eros International 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 Eros International will offset losses from the drop in Eros International's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. Oil Natural Gas | State Bank vs. ICICI Bank Limited |
| Eros International vs. Reliance Industries Limited | Eros International vs. State Bank of | Eros International vs. HDFC Bank Limited | Eros International vs. Oil Natural Gas |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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