Correlation Between Saksoft and State Bank
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By analyzing existing cross correlation between Saksoft Limited and State Bank of, you can compare the effects of market volatilities on Saksoft 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 Saksoft with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksoft and State Bank.
Diversification Opportunities for Saksoft and State Bank
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saksoft and State is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saksoft 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 Saksoft 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 Saksoft 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 Saksoft i.e., Saksoft and State Bank go up and down completely randomly.
Pair Corralation between Saksoft and State Bank
Assuming the 90 days trading horizon Saksoft Limited is expected to under-perform the State Bank. In addition to that, Saksoft is 1.61 times more volatile than State Bank of. It trades about -0.01 of its total potential returns per unit of risk. State Bank of is currently generating about 0.07 per unit of volatility. If you would invest 62,865 in State Bank of on September 25, 2024 and sell it today you would earn a total of 19,250 from holding State Bank of or generate 30.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.77% |
Values | Daily Returns |
Saksoft Limited vs. State Bank of
Performance |
Timeline |
Saksoft Limited |
State Bank |
Saksoft and State Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saksoft and State Bank
The main advantage of trading using opposite Saksoft and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksoft 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.Saksoft vs. State Bank of | Saksoft vs. Life Insurance | Saksoft vs. HDFC Bank Limited | Saksoft vs. ICICI Bank Limited |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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