Correlation Between State Bank and PB Fintech
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By analyzing existing cross correlation between State Bank of and PB Fintech Limited, you can compare the effects of market volatilities on State Bank and PB Fintech 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 PB Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and PB Fintech.
Diversification Opportunities for State Bank and PB Fintech
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between State and POLICYBZR is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and PB Fintech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PB Fintech Limited 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 PB Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PB Fintech Limited has no effect on the direction of State Bank i.e., State Bank and PB Fintech go up and down completely randomly.
Pair Corralation between State Bank and PB Fintech
Assuming the 90 days trading horizon State Bank is expected to generate 5.27 times less return on investment than PB Fintech. But when comparing it to its historical volatility, State Bank of is 1.58 times less risky than PB Fintech. It trades about 0.04 of its potential returns per unit of risk. PB Fintech Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 41,955 in PB Fintech Limited on October 12, 2024 and sell it today you would earn a total of 144,340 from holding PB Fintech Limited or generate 344.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. PB Fintech Limited
Performance |
| Timeline |
| State Bank |
| PB Fintech Limited |
State Bank and PB Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and PB Fintech
The main advantage of trading using opposite State Bank and PB Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, PB Fintech 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 PB Fintech will offset losses from the drop in PB Fintech's long position.| State Bank vs. Foods Inns Limited | State Bank vs. Sonata Software Limited | State Bank vs. Uniinfo Telecom Services | State Bank vs. One 97 Communications |
| PB Fintech vs. State Bank of | PB Fintech vs. Life Insurance | PB Fintech vs. HDFC Bank Limited | PB Fintech vs. ICICI Bank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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