Correlation Between Steelcast and State Bank
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By analyzing existing cross correlation between Steelcast Limited and State Bank of, you can compare the effects of market volatilities on Steelcast and State 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steelcast and State Bank.
Diversification Opportunities for Steelcast and State Bank
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Steelcast and State is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Steelcast Limited and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Steelcast i.e., Steelcast and State Bank go up and down completely randomly.
Pair Corralation between Steelcast and State Bank
Assuming the 90 days trading horizon Steelcast Limited is expected to generate 3.12 times more return on investment than State Bank. However, Steelcast is 3.12 times more volatile than State Bank of. It trades about 0.03 of its potential returns per unit of risk. State Bank of is currently generating about -0.21 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steelcast Limited vs. State Bank of
Performance |
| Timeline |
| Steelcast Limited |
| State Bank |
Steelcast and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steelcast and State Bank
The main advantage of trading using opposite Steelcast and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steelcast position performs unexpectedly, State 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 State Bank will offset losses from the drop in State Bank's long position.| Steelcast vs. Manali Petrochemicals Limited | Steelcast vs. Gujarat Fluorochemicals Limited | Steelcast vs. Chembond Chemicals | Steelcast vs. Dharani SugarsChemicals Limited |
| State Bank vs. Network18 Media Investments | State Bank vs. Entertainment Network Limited | State Bank vs. Sambhaav Media Limited | State Bank vs. Zee Entertainment Enterprises |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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