Correlation Between State Bank and Taj GVK
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By analyzing existing cross correlation between State Bank of and Taj GVK Hotels, you can compare the effects of market volatilities on State Bank and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Taj GVK.
Diversification Opportunities for State Bank and Taj GVK
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and Taj is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of State Bank i.e., State Bank and Taj GVK go up and down completely randomly.
Pair Corralation between State Bank and Taj GVK
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Taj GVK. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 3.2 times less risky than Taj GVK. The stock trades about -0.19 of its potential returns per unit of risk. The Taj GVK Hotels is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 38,205 in Taj GVK Hotels on October 29, 2024 and sell it today you would lose (1,935) from holding Taj GVK Hotels or give up 5.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Taj GVK Hotels
Performance |
| Timeline |
| State Bank |
| Taj GVK Hotels |
State Bank and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Taj GVK
The main advantage of trading using opposite State Bank and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.| State Bank vs. Tata Communications Limited | State Bank vs. Tree House Education | State Bank vs. Gujarat Lease Financing | State Bank vs. Ortel Communications Limited |
| Taj GVK vs. State Bank of | Taj GVK vs. Life Insurance | Taj GVK vs. HDFC Bank Limited | Taj GVK 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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