Correlation Between Spencers Retail and CSB Bank
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By analyzing existing cross correlation between Spencers Retail Limited and CSB Bank Limited, you can compare the effects of market volatilities on Spencers Retail and CSB Bank 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 Spencers Retail with a short position of CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and CSB Bank.
Diversification Opportunities for Spencers Retail and CSB Bank
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spencers and CSB is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and CSB Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSB Bank Limited and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with CSB Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSB Bank Limited has no effect on the direction of Spencers Retail i.e., Spencers Retail and CSB Bank go up and down completely randomly.
Pair Corralation between Spencers Retail and CSB Bank
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the CSB Bank. In addition to that, Spencers Retail is 1.84 times more volatile than CSB Bank Limited. It trades about -0.09 of its total potential returns per unit of risk. CSB Bank Limited is currently generating about -0.04 per unit of volatility. If you would invest 30,995 in CSB Bank Limited on August 29, 2024 and sell it today you would lose (360.00) from holding CSB Bank Limited or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. CSB Bank Limited
Performance |
| Timeline |
| Spencers Retail |
| CSB Bank Limited |
Spencers Retail and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and CSB Bank
The main advantage of trading using opposite Spencers Retail and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, CSB Bank 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 CSB Bank will offset losses from the drop in CSB Bank's long position.| Spencers Retail vs. Tata Consultancy Services | Spencers Retail vs. Quess Corp Limited | Spencers Retail vs. Reliance Industries Limited | Spencers Retail vs. SIS LIMITED |
| CSB Bank vs. MRF Limited | CSB Bank vs. JSW Holdings Limited | CSB Bank vs. Maharashtra Scooters Limited | CSB Bank vs. Nalwa Sons Investments |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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