Correlation Between Yes Bank and State Trading
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By analyzing existing cross correlation between Yes Bank Limited and The State Trading, you can compare the effects of market volatilities on Yes Bank and State Trading 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 Yes Bank with a short position of State Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and State Trading.
Diversification Opportunities for Yes Bank and State Trading
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yes and State is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank Limited and The State Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Trading and Yes Bank 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 Yes Bank Limited are associated (or correlated) with State Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Trading has no effect on the direction of Yes Bank i.e., Yes Bank and State Trading go up and down completely randomly.
Pair Corralation between Yes Bank and State Trading
Assuming the 90 days trading horizon Yes Bank is expected to generate 2.9 times less return on investment than State Trading. But when comparing it to its historical volatility, Yes Bank Limited is 1.43 times less risky than State Trading. It trades about 0.03 of its potential returns per unit of risk. The State Trading is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,180 in The State Trading on September 13, 2024 and sell it today you would earn a total of 9,244 from holding The State Trading or generate 113.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.59% |
| Values | Daily Returns |
Yes Bank Limited vs. The State Trading
Performance |
| Timeline |
| Yes Bank Limited |
| State Trading |
Yes Bank and State Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Bank and State Trading
The main advantage of trading using opposite Yes Bank and State Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank position performs unexpectedly, State Trading 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 Trading will offset losses from the drop in State Trading's long position.| Yes Bank vs. Reliance Industries Limited | Yes Bank vs. State Bank of | Yes Bank vs. Oil Natural Gas | Yes Bank vs. ICICI Bank Limited |
| State Trading vs. Yes Bank Limited | State Trading vs. Kingfa Science Technology | State Trading vs. Rico Auto Industries | State Trading vs. GACM Technologies 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 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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