Correlation Between State Bank and V2 Retail
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By analyzing existing cross correlation between State Bank of and V2 Retail Limited, you can compare the effects of market volatilities on State Bank and V2 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and V2 Retail.
Diversification Opportunities for State Bank and V2 Retail
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and V2RETAIL is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail Limited 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of State Bank i.e., State Bank and V2 Retail go up and down completely randomly.
Pair Corralation between State Bank and V2 Retail
Assuming the 90 days trading horizon State Bank of is expected to under-perform the V2 Retail. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.78 times less risky than V2 Retail. The stock trades about -0.29 of its potential returns per unit of risk. The V2 Retail Limited is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 162,160 in V2 Retail Limited on October 20, 2024 and sell it today you would earn a total of 26,940 from holding V2 Retail Limited or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. V2 Retail Limited
Performance |
| Timeline |
| State Bank |
| V2 Retail Limited |
State Bank and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and V2 Retail
The main advantage of trading using opposite State Bank and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, V2 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 V2 Retail will offset losses from the drop in V2 Retail's long position.| State Bank vs. Pritish Nandy Communications | State Bank vs. SIL Investments Limited | State Bank vs. AUTHUM INVESTMENT INFRASTRUCTU | State Bank vs. Styrenix Performance Materials |
| V2 Retail vs. Ortel Communications Limited | V2 Retail vs. Bodhi Tree Multimedia | V2 Retail vs. Tata Communications Limited | V2 Retail vs. Zee Entertainment Enterprises |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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