Correlation Between State Bank and Usha Martin
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By analyzing existing cross correlation between State Bank of and Usha Martin Education, you can compare the effects of market volatilities on State Bank and Usha Martin 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 Usha Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Usha Martin.
Diversification Opportunities for State Bank and Usha Martin
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Usha is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Usha Martin Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usha Martin Education 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 Usha Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usha Martin Education has no effect on the direction of State Bank i.e., State Bank and Usha Martin go up and down completely randomly.
Pair Corralation between State Bank and Usha Martin
Assuming the 90 days trading horizon State Bank of is expected to generate 0.6 times more return on investment than Usha Martin. However, State Bank of is 1.66 times less risky than Usha Martin. It trades about 0.1 of its potential returns per unit of risk. Usha Martin Education is currently generating about 0.06 per unit of risk. If you would invest 55,420 in State Bank of on September 14, 2024 and sell it today you would earn a total of 29,950 from holding State Bank of or generate 54.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Usha Martin Education
Performance |
| Timeline |
| State Bank |
| Usha Martin Education |
State Bank and Usha Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Usha Martin
The main advantage of trading using opposite State Bank and Usha Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Usha Martin 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 Usha Martin will offset losses from the drop in Usha Martin's long position.| State Bank vs. Reliance Industries Limited | State Bank vs. Oil Natural Gas | State Bank vs. ICICI Bank Limited |
| Usha Martin vs. Reliance Industries Limited | Usha Martin vs. State Bank of | Usha Martin vs. Oil Natural Gas | Usha Martin 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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