Correlation Between State Bank and Spencers Retail
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and Spencers Retail Limited, you can compare the effects of market volatilities on State Bank and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Spencers Retail.
Diversification Opportunities for State Bank and Spencers Retail
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Spencers is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of State Bank i.e., State Bank and Spencers Retail go up and down completely randomly.
Pair Corralation between State Bank and Spencers Retail
Assuming the 90 days trading horizon State Bank of is expected to generate 0.92 times more return on investment than Spencers Retail. However, State Bank of is 1.09 times less risky than Spencers Retail. It trades about 0.07 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.2 per unit of risk. If you would invest 79,455 in State Bank of on August 25, 2024 and sell it today you would earn a total of 2,150 from holding State Bank of or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Spencers Retail Limited
Performance |
| Timeline |
| State Bank |
| Spencers Retail |
State Bank and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Spencers Retail
The main advantage of trading using opposite State Bank and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| State Bank vs. Max Financial Services | State Bank vs. Geojit Financial Services | State Bank vs. Datamatics Global Services | State Bank vs. Chalet Hotels Limited |
| Spencers Retail vs. State Bank of | Spencers Retail vs. Life Insurance | Spencers Retail vs. HDFC Bank Limited | Spencers Retail 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |