Correlation Between State Bank and Gokul Refoils
Can any of the company-specific risk be diversified away by investing in both State Bank and Gokul Refoils at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining State Bank and Gokul Refoils into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and Gokul Refoils and, you can compare the effects of market volatilities on State Bank and Gokul Refoils 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 Gokul Refoils. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Gokul Refoils.
Diversification Opportunities for State Bank and Gokul Refoils
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between State and Gokul is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Gokul Refoils and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gokul Refoils 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 Gokul Refoils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gokul Refoils has no effect on the direction of State Bank i.e., State Bank and Gokul Refoils go up and down completely randomly.
Pair Corralation between State Bank and Gokul Refoils
Assuming the 90 days trading horizon State Bank of is expected to generate 0.7 times more return on investment than Gokul Refoils. However, State Bank of is 1.42 times less risky than Gokul Refoils. It trades about 0.19 of its potential returns per unit of risk. Gokul Refoils and is currently generating about -0.08 per unit of risk. If you would invest 74,955 in State Bank of on January 19, 2025 and sell it today you would earn a total of 4,790 from holding State Bank of or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Gokul Refoils and
Performance |
| Timeline |
| State Bank |
| Gokul Refoils |
State Bank and Gokul Refoils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Gokul Refoils
The main advantage of trading using opposite State Bank and Gokul Refoils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Gokul Refoils 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 Gokul Refoils will offset losses from the drop in Gokul Refoils' long position.| State Bank vs. Consolidated Construction Consortium | State Bank vs. Indo Borax Chemicals | State Bank vs. Kingfa Science Technology | State Bank vs. Alkali Metals Limited |
| Gokul Refoils vs. Reliance Industries Limited | Gokul Refoils vs. HDFC Bank Limited | Gokul Refoils vs. Kingfa Science Technology | Gokul Refoils vs. Rico Auto Industries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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