Correlation Between Speciality Restaurants and State Bank
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By analyzing existing cross correlation between Speciality Restaurants Limited and State Bank of, you can compare the effects of market volatilities on Speciality Restaurants 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 Speciality Restaurants with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speciality Restaurants and State Bank.
Diversification Opportunities for Speciality Restaurants and State Bank
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Speciality and State is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Speciality Restaurants 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 Speciality Restaurants 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 Speciality Restaurants 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 Speciality Restaurants i.e., Speciality Restaurants and State Bank go up and down completely randomly.
Pair Corralation between Speciality Restaurants and State Bank
Assuming the 90 days trading horizon Speciality Restaurants Limited is expected to under-perform the State Bank. In addition to that, Speciality Restaurants is 1.33 times more volatile than State Bank of. It trades about -0.03 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 59,315 in State Bank of on September 26, 2024 and sell it today you would earn a total of 21,890 from holding State Bank of or generate 36.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.34% |
Values | Daily Returns |
Speciality Restaurants Limited vs. State Bank of
Performance |
Timeline |
Speciality Restaurants |
State Bank |
Speciality Restaurants and State Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Speciality Restaurants and State Bank
The main advantage of trading using opposite Speciality Restaurants and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speciality Restaurants 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.Speciality Restaurants vs. Kingfa Science Technology | Speciality Restaurants vs. Rico Auto Industries | Speciality Restaurants vs. GACM Technologies Limited | Speciality Restaurants vs. COSMO FIRST 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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