Correlation Between State Bank and Mold Tek
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By analyzing existing cross correlation between State Bank of and Mold Tek Packaging Limited, you can compare the effects of market volatilities on State Bank and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Mold Tek.
Diversification Opportunities for State Bank and Mold Tek
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Mold is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of State Bank i.e., State Bank and Mold Tek go up and down completely randomly.
Pair Corralation between State Bank and Mold Tek
Assuming the 90 days trading horizon State Bank of is expected to generate 1.18 times more return on investment than Mold Tek. However, State Bank is 1.18 times more volatile than Mold Tek Packaging Limited. It trades about 0.03 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about -0.24 per unit of risk. If you would invest 82,985 in State Bank of on September 4, 2024 and sell it today you would earn a total of 655.00 from holding State Bank of or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Mold Tek Packaging Limited
Performance |
| Timeline |
| State Bank |
| Mold Tek Packaging |
State Bank and Mold Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Mold Tek
The main advantage of trading using opposite State Bank and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek's long position.| State Bank vs. Yatharth Hospital Trauma | State Bank vs. United Drilling Tools | State Bank vs. GPT Healthcare | State Bank vs. AUTHUM INVESTMENT INFRASTRUCTU |
| Mold Tek vs. ideaForge Technology Limited | Mold Tek vs. Nucleus Software Exports | Mold Tek vs. Transport of | Mold Tek vs. Sarthak Metals Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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