Correlation Between State Bank and Man Infraconstructio
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By analyzing existing cross correlation between State Bank of and Man Infraconstruction Limited, you can compare the effects of market volatilities on State Bank and Man Infraconstructio 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 Man Infraconstructio. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Man Infraconstructio.
Diversification Opportunities for State Bank and Man Infraconstructio
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between State and Man is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Man Infraconstruction Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Infraconstruction 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 Man Infraconstructio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Infraconstruction has no effect on the direction of State Bank i.e., State Bank and Man Infraconstructio go up and down completely randomly.
Pair Corralation between State Bank and Man Infraconstructio
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Man Infraconstructio. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.33 times less risky than Man Infraconstructio. The stock trades about -0.02 of its potential returns per unit of risk. The Man Infraconstruction Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 19,399 in Man Infraconstruction Limited on September 1, 2024 and sell it today you would earn a total of 4,021 from holding Man Infraconstruction Limited or generate 20.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
State Bank of vs. Man Infraconstruction Limited
Performance |
| Timeline |
| State Bank |
| Man Infraconstruction |
State Bank and Man Infraconstructio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Man Infraconstructio
The main advantage of trading using opposite State Bank and Man Infraconstructio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Man Infraconstructio 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 Man Infraconstructio will offset losses from the drop in Man Infraconstructio's long position.| State Bank vs. Allied Blenders Distillers | State Bank vs. HDFC Asset Management | State Bank vs. IDBI Bank Limited | State Bank vs. DCB Bank Limited |
| Man Infraconstructio vs. The Orissa Minerals | Man Infraconstructio vs. Malu Paper Mills | Man Infraconstructio vs. Kingfa Science Technology | Man Infraconstructio vs. Rico Auto Industries |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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