Correlation Between State Bank and Hilton Metal
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By analyzing existing cross correlation between State Bank of and Hilton Metal Forging, you can compare the effects of market volatilities on State Bank and Hilton Metal 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 Hilton Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Hilton Metal.
Diversification Opportunities for State Bank and Hilton Metal
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Hilton is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Hilton Metal Forging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Metal Forging 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 Hilton Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Metal Forging has no effect on the direction of State Bank i.e., State Bank and Hilton Metal go up and down completely randomly.
Pair Corralation between State Bank and Hilton Metal
Assuming the 90 days trading horizon State Bank is expected to generate 2.08 times less return on investment than Hilton Metal. But when comparing it to its historical volatility, State Bank of is 1.39 times less risky than Hilton Metal. It trades about 0.17 of its potential returns per unit of risk. Hilton Metal Forging is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 8,286 in Hilton Metal Forging on September 14, 2024 and sell it today you would earn a total of 992.00 from holding Hilton Metal Forging or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Hilton Metal Forging
Performance |
| Timeline |
| State Bank |
| Hilton Metal Forging |
State Bank and Hilton Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Hilton Metal
The main advantage of trading using opposite State Bank and Hilton Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Hilton Metal 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 Hilton Metal will offset losses from the drop in Hilton Metal's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. Oil Natural Gas | State Bank vs. ICICI Bank Limited |
| Hilton Metal vs. Silgo Retail Limited | Hilton Metal vs. Diligent Media | Hilton Metal vs. Cantabil Retail India | Hilton Metal vs. Shemaroo Entertainment Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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