Correlation Between Investment Trust and State Bank
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By analyzing existing cross correlation between The Investment Trust and State Bank of, you can compare the effects of market volatilities on Investment Trust 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 Investment Trust with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and State Bank.
Diversification Opportunities for Investment Trust and State Bank
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investment and State is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Investment Trust 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 Investment Trust 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 Investment Trust i.e., Investment Trust and State Bank go up and down completely randomly.
Pair Corralation between Investment Trust and State Bank
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the State Bank. In addition to that, Investment Trust is 1.45 times more volatile than State Bank of. It trades about -0.08 of its total potential returns per unit of risk. State Bank of is currently generating about -0.05 per unit of volatility. If you would invest 79,205 in State Bank of on October 26, 2024 and sell it today you would lose (4,615) from holding State Bank of or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. State Bank of
Performance |
| Timeline |
| Investment Trust |
| State Bank |
Investment Trust and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and State Bank
The main advantage of trading using opposite Investment Trust and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust 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.| Investment Trust vs. State Bank of | Investment Trust vs. Reliance Industries Limited | Investment Trust vs. HDFC Bank Limited | Investment Trust vs. Tata Motors Limited |
| State Bank vs. JSW Steel Limited | State Bank vs. Sunflag Iron And | State Bank vs. SAL Steel Limited | State Bank vs. Visa Steel Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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