Correlation Between State Bank and SUMMARECON AGUNG
Can any of the company-specific risk be diversified away by investing in both State Bank and SUMMARECON AGUNG at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining State Bank and SUMMARECON AGUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and SUMMARECON AGUNG, you can compare the effects of market volatilities on State Bank and SUMMARECON AGUNG 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 SUMMARECON AGUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and SUMMARECON AGUNG.
Diversification Opportunities for State Bank and SUMMARECON AGUNG
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and SUMMARECON is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and SUMMARECON AGUNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMMARECON AGUNG 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 SUMMARECON AGUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMMARECON AGUNG has no effect on the direction of State Bank i.e., State Bank and SUMMARECON AGUNG go up and down completely randomly.
Pair Corralation between State Bank and SUMMARECON AGUNG
Assuming the 90 days horizon State Bank of is expected to under-perform the SUMMARECON AGUNG. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 4.7 times less risky than SUMMARECON AGUNG. The stock trades about -0.31 of its potential returns per unit of risk. The SUMMARECON AGUNG is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1.80 in SUMMARECON AGUNG on October 21, 2024 and sell it today you would lose (0.20) from holding SUMMARECON AGUNG or give up 11.11% 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. SUMMARECON AGUNG
Performance |
| Timeline |
| State Bank |
| SUMMARECON AGUNG |
State Bank and SUMMARECON AGUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and SUMMARECON AGUNG
The main advantage of trading using opposite State Bank and SUMMARECON AGUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, SUMMARECON AGUNG 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 SUMMARECON AGUNG will offset losses from the drop in SUMMARECON AGUNG's long position.| State Bank vs. China Merchants Bank | State Bank vs. HDFC Bank Limited | State Bank vs. ICICI Bank Limited | State Bank vs. PT Bank Central |
| SUMMARECON AGUNG vs. Calibre Mining Corp | SUMMARECON AGUNG vs. Harmony Gold Mining | SUMMARECON AGUNG vs. De Grey Mining | SUMMARECON AGUNG vs. Zijin Mining Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |