Correlation Between State Bank and Marshall Machines
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By analyzing existing cross correlation between State Bank of and Marshall Machines Limited, you can compare the effects of market volatilities on State Bank and Marshall Machines 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 Marshall Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Marshall Machines.
Diversification Opportunities for State Bank and Marshall Machines
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Marshall is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Marshall Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marshall Machines 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 Marshall Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marshall Machines has no effect on the direction of State Bank i.e., State Bank and Marshall Machines go up and down completely randomly.
Pair Corralation between State Bank and Marshall Machines
Assuming the 90 days trading horizon State Bank of is expected to generate 0.47 times more return on investment than Marshall Machines. However, State Bank of is 2.13 times less risky than Marshall Machines. It trades about 0.07 of its potential returns per unit of risk. Marshall Machines Limited is currently generating about 0.01 per unit of risk. If you would invest 52,217 in State Bank of on September 19, 2024 and sell it today you would earn a total of 32,838 from holding State Bank of or generate 62.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.93% |
| Values | Daily Returns |
State Bank of vs. Marshall Machines Limited
Performance |
| Timeline |
| State Bank |
| Marshall Machines |
State Bank and Marshall Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Marshall Machines
The main advantage of trading using opposite State Bank and Marshall Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Marshall Machines 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 Marshall Machines will offset losses from the drop in Marshall Machines' long position.| State Bank vs. Metalyst Forgings Limited | State Bank vs. Styrenix Performance Materials | State Bank vs. Shyam Metalics and | State Bank vs. Navneet Education Limited |
| Marshall Machines vs. Popular Vehicles and | Marshall Machines vs. EIH Associated Hotels | Marshall Machines vs. Spencers Retail Limited | Marshall Machines vs. Lemon Tree Hotels |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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