Correlation Between State Bank and POWERGRID Infrastructure
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By analyzing existing cross correlation between State Bank of and POWERGRID Infrastructure Investment, you can compare the effects of market volatilities on State Bank and POWERGRID Infrastructure 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 POWERGRID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and POWERGRID Infrastructure.
Diversification Opportunities for State Bank and POWERGRID Infrastructure
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between State and POWERGRID is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and POWERGRID Infrastructure Inves in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POWERGRID Infrastructure 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 POWERGRID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POWERGRID Infrastructure has no effect on the direction of State Bank i.e., State Bank and POWERGRID Infrastructure go up and down completely randomly.
Pair Corralation between State Bank and POWERGRID Infrastructure
Assuming the 90 days trading horizon State Bank of is expected to generate 2.33 times more return on investment than POWERGRID Infrastructure. However, State Bank is 2.33 times more volatile than POWERGRID Infrastructure Investment. It trades about 0.05 of its potential returns per unit of risk. POWERGRID Infrastructure Investment is currently generating about -0.12 per unit of risk. If you would invest 59,525 in State Bank of on August 30, 2024 and sell it today you would earn a total of 23,885 from holding State Bank of or generate 40.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
State Bank of vs. POWERGRID Infrastructure Inves
Performance |
| Timeline |
| State Bank |
| POWERGRID Infrastructure |
State Bank and POWERGRID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and POWERGRID Infrastructure
The main advantage of trading using opposite State Bank and POWERGRID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, POWERGRID Infrastructure 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 POWERGRID Infrastructure will offset losses from the drop in POWERGRID Infrastructure's long position.| State Bank vs. MRF Limited | State Bank vs. Nalwa Sons Investments | State Bank vs. Vardhman Holdings Limited |
| POWERGRID Infrastructure vs. Reliance Industries Limited | POWERGRID Infrastructure vs. State Bank of | POWERGRID Infrastructure vs. HDFC Bank Limited | POWERGRID Infrastructure vs. Oil Natural Gas |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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