Correlation Between Steelcast and CSB Bank
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By analyzing existing cross correlation between Steelcast Limited and CSB Bank Limited, you can compare the effects of market volatilities on Steelcast 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 Steelcast with a short position of CSB Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and CSB Bank.
Diversification Opportunities for Steelcast and CSB Bank
Very weak diversification
The 3 months correlation between Steelcast and CSB is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast 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 Steelcast 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 Steelcast 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 Steelcast i.e., Steelcast and CSB Bank go up and down completely randomly.
Pair Corralation between Steelcast and CSB Bank
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 1.88 times more return on investment than CSB Bank. However, Steelcast is 1.88 times more volatile than CSB Bank Limited. It trades about 0.03 of its potential returns per unit of risk. CSB Bank Limited is currently generating about -0.1 per unit of risk. If you would invest 81,354 in Steelcast Limited on November 28, 2024 and sell it today you would earn a total of 856.00 from holding Steelcast Limited or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steelcast Limited vs. CSB Bank Limited
Performance |
| Timeline |
| Steelcast Limited |
| CSB Bank Limited |
Steelcast and CSB Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and CSB Bank
The main advantage of trading using opposite Steelcast and CSB Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast 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.| Steelcast vs. Manali Petrochemicals Limited | Steelcast vs. Gujarat Fluorochemicals Limited | Steelcast vs. Chembond Chemicals | Steelcast vs. Dharani SugarsChemicals Limited |
| CSB Bank vs. VA Tech Wabag | CSB Bank vs. Teamlease Services Limited | CSB Bank vs. Univa Foods Limited | CSB Bank vs. 63 moons technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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