Correlation Between State Bank and Metropolis Healthcare
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By analyzing existing cross correlation between State Bank of and Metropolis Healthcare Limited, you can compare the effects of market volatilities on State Bank and Metropolis Healthcare 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 Metropolis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Metropolis Healthcare.
Diversification Opportunities for State Bank and Metropolis Healthcare
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Metropolis is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Metropolis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolis Healthcare 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 Metropolis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolis Healthcare has no effect on the direction of State Bank i.e., State Bank and Metropolis Healthcare go up and down completely randomly.
Pair Corralation between State Bank and Metropolis Healthcare
Assuming the 90 days trading horizon State Bank of is expected to generate 1.03 times more return on investment than Metropolis Healthcare. However, State Bank is 1.03 times more volatile than Metropolis Healthcare Limited. It trades about 0.02 of its potential returns per unit of risk. Metropolis Healthcare Limited is currently generating about 0.02 per unit of risk. If you would invest 82,480 in State Bank of on September 3, 2024 and sell it today you would earn a total of 1,415 from holding State Bank of or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
State Bank of vs. Metropolis Healthcare Limited
Performance |
| Timeline |
| State Bank |
| Metropolis Healthcare |
State Bank and Metropolis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Metropolis Healthcare
The main advantage of trading using opposite State Bank and Metropolis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Metropolis Healthcare 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 Metropolis Healthcare will offset losses from the drop in Metropolis Healthcare's long position.| State Bank vs. Sonata Software Limited | State Bank vs. Sarveshwar Foods Limited | State Bank vs. Agro Tech Foods | State Bank vs. Tamilnadu Telecommunication Limited |
| Metropolis Healthcare vs. Life Insurance | Metropolis Healthcare vs. Power Finance | Metropolis Healthcare vs. HDFC Bank Limited | Metropolis Healthcare vs. State Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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