Correlation Between State Bank and FCS Software
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By analyzing existing cross correlation between State Bank of and FCS Software Solutions, you can compare the effects of market volatilities on State Bank and FCS Software 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 FCS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and FCS Software.
Diversification Opportunities for State Bank and FCS Software
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and FCS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and FCS Software Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FCS Software Solutions 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 FCS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FCS Software Solutions has no effect on the direction of State Bank i.e., State Bank and FCS Software go up and down completely randomly.
Pair Corralation between State Bank and FCS Software
Assuming the 90 days trading horizon State Bank is expected to generate 1.64 times less return on investment than FCS Software. But when comparing it to its historical volatility, State Bank of is 2.33 times less risky than FCS Software. It trades about 0.04 of its potential returns per unit of risk. FCS Software Solutions is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 260.00 in FCS Software Solutions on October 12, 2024 and sell it today you would earn a total of 50.00 from holding FCS Software Solutions or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
State Bank of vs. FCS Software Solutions
Performance |
| Timeline |
| State Bank |
| FCS Software Solutions |
State Bank and FCS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and FCS Software
The main advantage of trading using opposite State Bank and FCS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, FCS Software 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 FCS Software will offset losses from the drop in FCS Software's long position.| State Bank vs. Foods Inns Limited | State Bank vs. Sonata Software Limited | State Bank vs. Uniinfo Telecom Services | State Bank vs. One 97 Communications |
| FCS Software vs. Radiant Cash Management | FCS Software vs. Dev Information Technology | FCS Software vs. Shivalik Bimetal Controls | FCS Software vs. Nahar Industrial Enterprises |
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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