Correlation Between State Bank and Indo Amines
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Indo Amines Limited, you can compare the effects of market volatilities on State Bank and Indo Amines 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 Indo Amines. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Indo Amines.
Diversification Opportunities for State Bank and Indo Amines
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Indo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Indo Amines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Amines 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 Indo Amines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Amines Limited has no effect on the direction of State Bank i.e., State Bank and Indo Amines go up and down completely randomly.
Pair Corralation between State Bank and Indo Amines
Assuming the 90 days trading horizon State Bank of is expected to generate 0.68 times more return on investment than Indo Amines. However, State Bank of is 1.47 times less risky than Indo Amines. It trades about 0.16 of its potential returns per unit of risk. Indo Amines Limited is currently generating about 0.04 per unit of risk. If you would invest 79,205 in State Bank of on August 28, 2024 and sell it today you would earn a total of 5,240 from holding State Bank of or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Indo Amines Limited
Performance |
| Timeline |
| State Bank |
| Indo Amines Limited |
State Bank and Indo Amines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Indo Amines
The main advantage of trading using opposite State Bank and Indo Amines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Indo Amines 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 Indo Amines will offset losses from the drop in Indo Amines' long position.| State Bank vs. Zuari Agro Chemicals | State Bank vs. Gujarat Fluorochemicals Limited | State Bank vs. Hemisphere Properties India | State Bank vs. Gallantt Ispat Limited |
| Indo Amines vs. NMDC Limited | Indo Amines vs. Steel Authority of | Indo Amines vs. Embassy Office Parks | Indo Amines vs. Gujarat Narmada Valley |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |