Correlation Between State Bank and Sonata Software
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Sonata Software Limited, you can compare the effects of market volatilities on State Bank and Sonata Software 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 Sonata Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Sonata Software.
Diversification Opportunities for State Bank and Sonata Software
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Sonata is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Sonata Software Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonata Software 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 Sonata Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonata Software has no effect on the direction of State Bank i.e., State Bank and Sonata Software go up and down completely randomly.
Pair Corralation between State Bank and Sonata Software
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Sonata Software. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.45 times less risky than Sonata Software. The stock trades about -0.07 of its potential returns per unit of risk. The Sonata Software Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 61,960 in Sonata Software Limited on October 14, 2024 and sell it today you would lose (995.00) from holding Sonata Software Limited or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
State Bank of vs. Sonata Software Limited
Performance |
| Timeline |
| State Bank |
| Sonata Software |
State Bank and Sonata Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Sonata Software
The main advantage of trading using opposite State Bank and Sonata Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Sonata Software 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 Sonata Software will offset losses from the drop in Sonata Software's long position.| State Bank vs. Lemon Tree Hotels | State Bank vs. Blue Coast Hotels | State Bank vs. Chalet Hotels Limited | State Bank vs. Aarti Drugs Limited |
| Sonata Software vs. Computer Age Management | Sonata Software vs. Chambal Fertilizers Chemicals | Sonata Software vs. Indo Borax Chemicals | Sonata Software vs. Baazar Style Retail |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |