Correlation Between State Bank and Genus Power
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By analyzing existing cross correlation between State Bank of and Genus Power Infrastructures, you can compare the effects of market volatilities on State Bank and Genus Power 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 State Bank with a short position of Genus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Genus Power.
Diversification Opportunities for State Bank and Genus Power
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between State and Genus is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Genus Power Infrastructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus Power Infrastr and State 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 State Bank of are associated (or correlated) with Genus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus Power Infrastr has no effect on the direction of State Bank i.e., State Bank and Genus Power go up and down completely randomly.
Pair Corralation between State Bank and Genus Power
Assuming the 90 days trading horizon State Bank of is expected to generate 0.64 times more return on investment than Genus Power. However, State Bank of is 1.57 times less risky than Genus Power. It trades about 0.02 of its potential returns per unit of risk. Genus Power Infrastructures is currently generating about -0.04 per unit of risk. If you would invest 80,185 in State Bank of on September 23, 2024 and sell it today you would earn a total of 1,015 from holding State Bank of or generate 1.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
State Bank of vs. Genus Power Infrastructures
Performance |
Timeline |
State Bank |
Genus Power Infrastr |
State Bank and Genus Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with State Bank and Genus Power
The main advantage of trading using opposite State Bank and Genus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Genus Power 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 Genus Power will offset losses from the drop in Genus Power's long position.State Bank vs. Kingfa Science Technology | State Bank vs. Rico Auto Industries | State Bank vs. GACM Technologies Limited | State Bank vs. COSMO FIRST LIMITED |
Genus Power vs. State Bank of | Genus Power vs. Life Insurance | Genus Power vs. HDFC Bank Limited | Genus Power vs. ICICI Bank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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