Correlation Between State Bank and Jubilant Foodworks
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By analyzing existing cross correlation between State Bank of and Jubilant Foodworks Limited, you can compare the effects of market volatilities on State Bank and Jubilant Foodworks 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 Jubilant Foodworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Jubilant Foodworks.
Diversification Opportunities for State Bank and Jubilant Foodworks
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Jubilant is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Jubilant Foodworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilant Foodworks 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 Jubilant Foodworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilant Foodworks has no effect on the direction of State Bank i.e., State Bank and Jubilant Foodworks go up and down completely randomly.
Pair Corralation between State Bank and Jubilant Foodworks
Assuming the 90 days trading horizon State Bank of is expected to generate 0.61 times more return on investment than Jubilant Foodworks. However, State Bank of is 1.63 times less risky than Jubilant Foodworks. It trades about -0.08 of its potential returns per unit of risk. Jubilant Foodworks Limited is currently generating about -0.14 per unit of risk. If you would invest 79,340 in State Bank of on November 4, 2024 and sell it today you would lose (2,050) from holding State Bank of or give up 2.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Jubilant Foodworks Limited
Performance |
| Timeline |
| State Bank |
| Jubilant Foodworks |
State Bank and Jubilant Foodworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Jubilant Foodworks
The main advantage of trading using opposite State Bank and Jubilant Foodworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Jubilant Foodworks 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 Jubilant Foodworks will offset losses from the drop in Jubilant Foodworks' long position.| State Bank vs. Aarti Drugs Limited | State Bank vs. SANOFI S HEALTHC | State Bank vs. Apollo Hospitals Enterprise | State Bank vs. Zota Health Care |
| Jubilant Foodworks vs. Tata Consultancy Services | Jubilant Foodworks vs. Quess Corp Limited | Jubilant Foodworks vs. Reliance Industries Limited | Jubilant Foodworks vs. Infosys 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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