Correlation Between State Bank and Hexa Tradex
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Hexa Tradex Limited, you can compare the effects of market volatilities on State Bank and Hexa Tradex 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 Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Hexa Tradex.
Diversification Opportunities for State Bank and Hexa Tradex
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Hexa is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex 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 Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of State Bank i.e., State Bank and Hexa Tradex go up and down completely randomly.
Pair Corralation between State Bank and Hexa Tradex
Assuming the 90 days trading horizon State Bank is expected to generate 11.73 times less return on investment than Hexa Tradex. But when comparing it to its historical volatility, State Bank of is 2.49 times less risky than Hexa Tradex. It trades about 0.04 of its potential returns per unit of risk. Hexa Tradex Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 14,965 in Hexa Tradex Limited on September 3, 2024 and sell it today you would earn a total of 16,620 from holding Hexa Tradex Limited or generate 111.06% 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. Hexa Tradex Limited
Performance |
| Timeline |
| State Bank |
| Hexa Tradex Limited |
State Bank and Hexa Tradex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Hexa Tradex
The main advantage of trading using opposite State Bank and Hexa Tradex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Hexa Tradex 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 Hexa Tradex will offset losses from the drop in Hexa Tradex's long position.| State Bank vs. Sonata Software Limited | State Bank vs. Sarveshwar Foods Limited | State Bank vs. Agro Tech Foods | State Bank vs. Tamilnadu Telecommunication Limited |
| Hexa Tradex vs. Reliance Industries Limited | Hexa Tradex vs. Shipping | Hexa Tradex vs. Indo Borax Chemicals | Hexa Tradex 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |