Correlation Between SBI Cards and Akme Fintrade
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By analyzing existing cross correlation between SBI Cards and and Akme Fintrade India, you can compare the effects of market volatilities on SBI Cards and Akme Fintrade 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 SBI Cards with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Cards and Akme Fintrade.
Diversification Opportunities for SBI Cards and Akme Fintrade
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SBI and Akme is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SBI Cards and and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and SBI Cards 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 SBI Cards and are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of SBI Cards i.e., SBI Cards and Akme Fintrade go up and down completely randomly.
Pair Corralation between SBI Cards and Akme Fintrade
Assuming the 90 days trading horizon SBI Cards and is expected to generate 0.71 times more return on investment than Akme Fintrade. However, SBI Cards and is 1.41 times less risky than Akme Fintrade. It trades about -0.06 of its potential returns per unit of risk. Akme Fintrade India is currently generating about -0.22 per unit of risk. If you would invest 74,435 in SBI Cards and on September 2, 2024 and sell it today you would lose (4,375) from holding SBI Cards and or give up 5.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
SBI Cards and vs. Akme Fintrade India
Performance |
Timeline |
SBI Cards |
Akme Fintrade India |
SBI Cards and Akme Fintrade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SBI Cards and Akme Fintrade
The main advantage of trading using opposite SBI Cards and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Cards position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.SBI Cards vs. Advani Hotels Resorts | SBI Cards vs. Reliance Home Finance | SBI Cards vs. Chalet Hotels Limited | SBI Cards vs. EIH Associated Hotels |
Akme Fintrade vs. Bajaj Finance Limited | Akme Fintrade vs. Indian Railway Finance | Akme Fintrade vs. Power Finance | Akme Fintrade vs. REC 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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