Correlation Between State Bank and Kaynes Technology
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By analyzing existing cross correlation between State Bank of and Kaynes Technology India, you can compare the effects of market volatilities on State Bank and Kaynes Technology 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 Kaynes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Kaynes Technology.
Diversification Opportunities for State Bank and Kaynes Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Kaynes is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Kaynes Technology India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaynes Technology India 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 Kaynes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaynes Technology India has no effect on the direction of State Bank i.e., State Bank and Kaynes Technology go up and down completely randomly.
Pair Corralation between State Bank and Kaynes Technology
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Kaynes Technology. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.92 times less risky than Kaynes Technology. The stock trades about -0.12 of its potential returns per unit of risk. The Kaynes Technology India is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 589,585 in Kaynes Technology India on September 24, 2024 and sell it today you would earn a total of 144,310 from holding Kaynes Technology India or generate 24.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Kaynes Technology India
Performance |
| Timeline |
| State Bank |
| Kaynes Technology India |
State Bank and Kaynes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Kaynes Technology
The main advantage of trading using opposite State Bank and Kaynes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Kaynes Technology 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 Kaynes Technology will offset losses from the drop in Kaynes Technology's long position.| State Bank vs. TECIL Chemicals and | State Bank vs. HDFC Life Insurance | State Bank vs. Chembond Chemicals | State Bank vs. Tata Chemicals Limited |
| Kaynes Technology vs. Reliance Industries Limited | Kaynes Technology vs. State Bank of | Kaynes Technology vs. HDFC Bank Limited | Kaynes Technology vs. Oil Natural Gas |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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