Correlation Between State Bank and Sky Gold
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By analyzing existing cross correlation between State Bank of and Sky Gold Limited, you can compare the effects of market volatilities on State Bank and Sky Gold 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 Sky Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Sky Gold.
Diversification Opportunities for State Bank and Sky Gold
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Sky is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Sky Gold Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sky Gold 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 Sky Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sky Gold Limited has no effect on the direction of State Bank i.e., State Bank and Sky Gold go up and down completely randomly.
Pair Corralation between State Bank and Sky Gold
Assuming the 90 days trading horizon State Bank is expected to generate 22.86 times less return on investment than Sky Gold. But when comparing it to its historical volatility, State Bank of is 26.01 times less risky than Sky Gold. It trades about 0.06 of its potential returns per unit of risk. Sky Gold Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,628 in Sky Gold Limited on October 23, 2024 and sell it today you would earn a total of 33,957 from holding Sky Gold Limited or generate 1292.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.98% |
| Values | Daily Returns |
State Bank of vs. Sky Gold Limited
Performance |
| Timeline |
| State Bank |
| Sky Gold Limited |
State Bank and Sky Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Sky Gold
The main advantage of trading using opposite State Bank and Sky Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Sky Gold 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 Sky Gold will offset losses from the drop in Sky Gold's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. HDFC Bank Limited | State Bank vs. Kingfa Science Technology | State Bank vs. Rico Auto Industries |
| Sky Gold vs. State Bank of | Sky Gold vs. Life Insurance | Sky Gold vs. HDFC Bank Limited | Sky Gold 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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