Correlation Between State Trading and V2 Retail
Specify exactly 2 symbols:
By analyzing existing cross correlation between The State Trading and V2 Retail Limited, you can compare the effects of market volatilities on State Trading 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 Trading with a short position of V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Trading and V2 Retail.
Diversification Opportunities for State Trading and V2 Retail
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between State and V2RETAIL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding The State Trading 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 Trading 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 The State Trading 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 Trading i.e., State Trading and V2 Retail go up and down completely randomly.
Pair Corralation between State Trading and V2 Retail
Assuming the 90 days trading horizon The State Trading is expected to under-perform the V2 Retail. But the stock apears to be less risky and, when comparing its historical volatility, The State Trading is 1.24 times less risky than V2 Retail. The stock trades about -0.13 of its potential returns per unit of risk. The V2 Retail Limited is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 180,320 in V2 Retail Limited on November 27, 2024 and sell it today you would lose (13,840) from holding V2 Retail Limited or give up 7.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The State Trading vs. V2 Retail Limited
Performance |
| Timeline |
| State Trading |
| V2 Retail Limited |
State Trading and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Trading and V2 Retail
The main advantage of trading using opposite State Trading and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Trading 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 Trading vs. Reliance Industries Limited | State Trading vs. HDFC Bank Limited | State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries |
| V2 Retail vs. Reliance Home Finance | V2 Retail vs. Prakash Steelage Limited | V2 Retail vs. Repco Home Finance | V2 Retail vs. Can Fin Homes |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |