Correlation Between State Bank and Motilal Oswal
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By analyzing existing cross correlation between State Bank of and Motilal Oswal Financial, you can compare the effects of market volatilities on State Bank and Motilal Oswal 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 Motilal Oswal. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Motilal Oswal.
Diversification Opportunities for State Bank and Motilal Oswal
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Motilal is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Motilal Oswal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motilal Oswal Financial 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 Motilal Oswal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motilal Oswal Financial has no effect on the direction of State Bank i.e., State Bank and Motilal Oswal go up and down completely randomly.
Pair Corralation between State Bank and Motilal Oswal
Assuming the 90 days trading horizon State Bank of is expected to generate 0.5 times more return on investment than Motilal Oswal. However, State Bank of is 2.02 times less risky than Motilal Oswal. It trades about -0.09 of its potential returns per unit of risk. Motilal Oswal Financial is currently generating about -0.19 per unit of risk. If you would invest 85,480 in State Bank of on November 6, 2024 and sell it today you would lose (7,560) from holding State Bank of or give up 8.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.77% |
| Values | Daily Returns |
State Bank of vs. Motilal Oswal Financial
Performance |
| Timeline |
| State Bank |
| Motilal Oswal Financial |
State Bank and Motilal Oswal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Motilal Oswal
The main advantage of trading using opposite State Bank and Motilal Oswal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Motilal Oswal 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 Motilal Oswal will offset losses from the drop in Motilal Oswal's long position.| State Bank vs. PB Fintech Limited | State Bank vs. PNC Infratech Limited | State Bank vs. Orient Technologies Limited | State Bank vs. ZF Commercial Vehicle |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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