Correlation Between State Bank and Medplus Health
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By analyzing existing cross correlation between State Bank of and Medplus Health Services, you can compare the effects of market volatilities on State Bank and Medplus Health 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 Medplus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Medplus Health.
Diversification Opportunities for State Bank and Medplus Health
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Medplus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Medplus Health Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medplus Health Services 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 Medplus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medplus Health Services has no effect on the direction of State Bank i.e., State Bank and Medplus Health go up and down completely randomly.
Pair Corralation between State Bank and Medplus Health
Assuming the 90 days trading horizon State Bank of is expected to generate 0.82 times more return on investment than Medplus Health. However, State Bank of is 1.22 times less risky than Medplus Health. It trades about 0.06 of its potential returns per unit of risk. Medplus Health Services is currently generating about 0.04 per unit of risk. If you would invest 57,605 in State Bank of on September 14, 2024 and sell it today you would earn a total of 27,765 from holding State Bank of or generate 48.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.39% |
| Values | Daily Returns |
State Bank of vs. Medplus Health Services
Performance |
| Timeline |
| State Bank |
| Medplus Health Services |
State Bank and Medplus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Medplus Health
The main advantage of trading using opposite State Bank and Medplus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Medplus Health 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 Medplus Health will offset losses from the drop in Medplus Health's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. Oil Natural Gas | State Bank vs. ICICI Bank Limited |
| Medplus Health vs. Cantabil Retail India | Medplus Health vs. Vidhi Specialty Food | Medplus Health vs. Apollo Hospitals Enterprise | Medplus Health vs. Parag Milk Foods |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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