Correlation Between State Bank and Indian Card
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By analyzing existing cross correlation between State Bank of and Indian Card Clothing, you can compare the effects of market volatilities on State Bank and Indian Card 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 Indian Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Indian Card.
Diversification Opportunities for State Bank and Indian Card
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between State and Indian is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Indian Card Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Card Clothing 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 Indian Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Card Clothing has no effect on the direction of State Bank i.e., State Bank and Indian Card go up and down completely randomly.
Pair Corralation between State Bank and Indian Card
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Indian Card. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 5.11 times less risky than Indian Card. The stock trades about -0.43 of its potential returns per unit of risk. The Indian Card Clothing is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 32,470 in Indian Card Clothing on October 10, 2024 and sell it today you would lose (3,495) from holding Indian Card Clothing or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
State Bank of vs. Indian Card Clothing
Performance |
| Timeline |
| State Bank |
| Indian Card Clothing |
State Bank and Indian Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Indian Card
The main advantage of trading using opposite State Bank and Indian Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Indian Card 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 Indian Card will offset losses from the drop in Indian Card's long position.| State Bank vs. Motilal Oswal Financial | State Bank vs. Sudarshan Chemical Industries | State Bank vs. DMCC SPECIALITY CHEMICALS | State Bank vs. ICICI Bank Limited |
| Indian Card vs. VIP Clothing Limited | Indian Card vs. Electronics Mart India | Indian Card vs. Jindal Poly Investment | Indian Card vs. Modi Rubber 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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