Correlation Between State Bank and Jindal Poly
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By analyzing existing cross correlation between State Bank of and Jindal Poly Investment, you can compare the effects of market volatilities on State Bank and Jindal Poly 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 Jindal Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Jindal Poly.
Diversification Opportunities for State Bank and Jindal Poly
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between State and Jindal is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Jindal Poly Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Poly Investment 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 Jindal Poly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Poly Investment has no effect on the direction of State Bank i.e., State Bank and Jindal Poly go up and down completely randomly.
Pair Corralation between State Bank and Jindal Poly
Assuming the 90 days trading horizon State Bank is expected to generate 4.55 times less return on investment than Jindal Poly. But when comparing it to its historical volatility, State Bank of is 2.47 times less risky than Jindal Poly. It trades about 0.14 of its potential returns per unit of risk. Jindal Poly Investment is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 75,815 in Jindal Poly Investment on August 29, 2024 and sell it today you would earn a total of 22,295 from holding Jindal Poly Investment or generate 29.41% 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. Jindal Poly Investment
Performance |
| Timeline |
| State Bank |
| Jindal Poly Investment |
State Bank and Jindal Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Jindal Poly
The main advantage of trading using opposite State Bank and Jindal Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Jindal Poly 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 Jindal Poly will offset losses from the drop in Jindal Poly's long position.| State Bank vs. MRF Limited | State Bank vs. Nalwa Sons Investments | State Bank vs. Kalyani Investment | State Bank vs. Vardhman Holdings Limited |
| Jindal Poly vs. MRF Limited | Jindal Poly vs. Nalwa Sons Investments | Jindal Poly vs. Kalyani Investment | Jindal Poly vs. Vardhman Holdings 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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