Correlation Between State Bank and SANOFI S
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By analyzing existing cross correlation between State Bank of and SANOFI S HEALTHC, you can compare the effects of market volatilities on State Bank and SANOFI S 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 SANOFI S. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and SANOFI S.
Diversification Opportunities for State Bank and SANOFI S
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and SANOFI is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and SANOFI S HEALTHC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOFI S HEALTHC 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 SANOFI S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOFI S HEALTHC has no effect on the direction of State Bank i.e., State Bank and SANOFI S go up and down completely randomly.
Pair Corralation between State Bank and SANOFI S
Assuming the 90 days trading horizon State Bank of is expected to generate 3.0 times more return on investment than SANOFI S. However, State Bank is 3.0 times more volatile than SANOFI S HEALTHC. It trades about 0.17 of its potential returns per unit of risk. SANOFI S HEALTHC is currently generating about 0.14 per unit of risk. If you would invest 80,865 in State Bank of on September 14, 2024 and sell it today you would earn a total of 4,505 from holding State Bank of or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. SANOFI S HEALTHC
Performance |
| Timeline |
| State Bank |
| SANOFI S HEALTHC |
State Bank and SANOFI S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and SANOFI S
The main advantage of trading using opposite State Bank and SANOFI S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, SANOFI S 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 SANOFI S will offset losses from the drop in SANOFI S's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. Oil Natural Gas | State Bank 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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