Correlation Between CSB Bank and Manaksia Steels
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By analyzing existing cross correlation between CSB Bank Limited and Manaksia Steels Limited, you can compare the effects of market volatilities on CSB Bank and Manaksia Steels 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 CSB Bank with a short position of Manaksia Steels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSB Bank and Manaksia Steels.
Diversification Opportunities for CSB Bank and Manaksia Steels
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSB and Manaksia is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CSB Bank Limited and Manaksia Steels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manaksia Steels and CSB 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 CSB Bank Limited are associated (or correlated) with Manaksia Steels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manaksia Steels has no effect on the direction of CSB Bank i.e., CSB Bank and Manaksia Steels go up and down completely randomly.
Pair Corralation between CSB Bank and Manaksia Steels
Assuming the 90 days trading horizon CSB Bank Limited is expected to generate 0.65 times more return on investment than Manaksia Steels. However, CSB Bank Limited is 1.55 times less risky than Manaksia Steels. It trades about -0.01 of its potential returns per unit of risk. Manaksia Steels Limited is currently generating about -0.05 per unit of risk. If you would invest 32,110 in CSB Bank Limited on September 25, 2024 and sell it today you would lose (635.00) from holding CSB Bank Limited or give up 1.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
CSB Bank Limited vs. Manaksia Steels Limited
Performance |
Timeline |
CSB Bank Limited |
Manaksia Steels |
CSB Bank and Manaksia Steels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSB Bank and Manaksia Steels
The main advantage of trading using opposite CSB Bank and Manaksia Steels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSB Bank position performs unexpectedly, Manaksia Steels 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 Manaksia Steels will offset losses from the drop in Manaksia Steels' long position.CSB Bank vs. Kingfa Science Technology | CSB Bank vs. Rico Auto Industries | CSB Bank vs. GACM Technologies Limited | CSB Bank 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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