Correlation Between State Bank and UTI Asset
Specify exactly 2 symbols:
By analyzing existing cross correlation between State Bank of and UTI Asset Management, you can compare the effects of market volatilities on State Bank and UTI Asset 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 UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and UTI Asset.
Diversification Opportunities for State Bank and UTI Asset
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and UTI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management 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 UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of State Bank i.e., State Bank and UTI Asset go up and down completely randomly.
Pair Corralation between State Bank and UTI Asset
Assuming the 90 days trading horizon State Bank of is expected to under-perform the UTI Asset. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 2.25 times less risky than UTI Asset. The stock trades about -0.26 of its potential returns per unit of risk. The UTI Asset Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 123,090 in UTI Asset Management on October 24, 2024 and sell it today you would lose (1,620) from holding UTI Asset Management or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. UTI Asset Management
Performance |
| Timeline |
| State Bank |
| UTI Asset Management |
State Bank and UTI Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and UTI Asset
The main advantage of trading using opposite State Bank and UTI Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, UTI Asset 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 UTI Asset will offset losses from the drop in UTI Asset's long position.| State Bank vs. Medplus Health Services | State Bank vs. Unitech Limited | State Bank vs. Sakar Healthcare Limited | State Bank vs. Zydus Wellness Limited |
| UTI Asset vs. Indian Railway Finance | UTI Asset vs. Cholamandalam Financial Holdings | UTI Asset vs. Reliance Industries Limited | UTI Asset vs. Tata Consultancy Services |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |