Correlation Between State Bank and Mtar Technologies
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By analyzing existing cross correlation between State Bank of and Mtar Technologies Limited, you can compare the effects of market volatilities on State Bank and Mtar Technologies 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 Mtar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Mtar Technologies.
Diversification Opportunities for State Bank and Mtar Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Mtar is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Mtar Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mtar Technologies 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 Mtar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mtar Technologies has no effect on the direction of State Bank i.e., State Bank and Mtar Technologies go up and down completely randomly.
Pair Corralation between State Bank and Mtar Technologies
Assuming the 90 days trading horizon State Bank of is expected to generate 0.65 times more return on investment than Mtar Technologies. However, State Bank of is 1.54 times less risky than Mtar Technologies. It trades about 0.04 of its potential returns per unit of risk. Mtar Technologies Limited is currently generating about -0.01 per unit of risk. If you would invest 54,412 in State Bank of on November 27, 2024 and sell it today you would earn a total of 17,228 from holding State Bank of or generate 31.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Mtar Technologies Limited
Performance |
| Timeline |
| State Bank |
| Mtar Technologies |
State Bank and Mtar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Mtar Technologies
The main advantage of trading using opposite State Bank and Mtar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Mtar Technologies 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 Mtar Technologies will offset losses from the drop in Mtar Technologies' long position.| State Bank vs. Computer Age Management | State Bank vs. Univa Foods Limited | State Bank vs. LT Foods Limited | State Bank vs. V Mart Retail Limited |
| Mtar Technologies vs. Jubilant Foodworks Limited | Mtar Technologies vs. Dodla Dairy Limited | Mtar Technologies vs. Ami Organics Limited | Mtar Technologies vs. Tata Communications 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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