Correlation Between State Bank and Xchanging Solutions
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By analyzing existing cross correlation between State Bank of and Xchanging Solutions Limited, you can compare the effects of market volatilities on State Bank and Xchanging Solutions 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 Xchanging Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Xchanging Solutions.
Diversification Opportunities for State Bank and Xchanging Solutions
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and Xchanging is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Xchanging Solutions Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xchanging Solutions 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 Xchanging Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xchanging Solutions has no effect on the direction of State Bank i.e., State Bank and Xchanging Solutions go up and down completely randomly.
Pair Corralation between State Bank and Xchanging Solutions
Assuming the 90 days trading horizon State Bank of is expected to generate 0.74 times more return on investment than Xchanging Solutions. However, State Bank of is 1.36 times less risky than Xchanging Solutions. It trades about 0.04 of its potential returns per unit of risk. Xchanging Solutions Limited is currently generating about -0.07 per unit of risk. If you would invest 79,310 in State Bank of on September 25, 2024 and sell it today you would earn a total of 2,805 from holding State Bank of or generate 3.54% 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. Xchanging Solutions Limited
Performance |
| Timeline |
| State Bank |
| Xchanging Solutions |
State Bank and Xchanging Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Xchanging Solutions
The main advantage of trading using opposite State Bank and Xchanging Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Xchanging Solutions 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 Xchanging Solutions will offset losses from the drop in Xchanging Solutions' long position.| State Bank vs. Sonata Software Limited | State Bank vs. Coffee Day Enterprises | State Bank vs. Sintex Plastics Technology | State Bank vs. Varun Beverages Limited |
| Xchanging Solutions vs. State Bank of | Xchanging Solutions vs. Life Insurance | Xchanging Solutions vs. HDFC Bank Limited | Xchanging Solutions 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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