Correlation Between State Bank and Honeywell Automation
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By analyzing existing cross correlation between State Bank of and Honeywell Automation India, you can compare the effects of market volatilities on State Bank and Honeywell Automation 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 Honeywell Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Honeywell Automation.
Diversification Opportunities for State Bank and Honeywell Automation
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Honeywell is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Honeywell Automation India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell Automation 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 Honeywell Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honeywell Automation has no effect on the direction of State Bank i.e., State Bank and Honeywell Automation go up and down completely randomly.
Pair Corralation between State Bank and Honeywell Automation
Assuming the 90 days trading horizon State Bank of is expected to generate 1.02 times more return on investment than Honeywell Automation. However, State Bank is 1.02 times more volatile than Honeywell Automation India. It trades about 0.02 of its potential returns per unit of risk. Honeywell Automation India is currently generating about -0.19 per unit of risk. If you would invest 79,825 in State Bank of on September 24, 2024 and sell it today you would earn a total of 1,375 from holding State Bank of or generate 1.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
State Bank of vs. Honeywell Automation India
Performance |
Timeline |
State Bank |
Honeywell Automation |
State Bank and Honeywell Automation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with State Bank and Honeywell Automation
The main advantage of trading using opposite State Bank and Honeywell Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Honeywell Automation 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 Honeywell Automation will offset losses from the drop in Honeywell Automation's long position.State Bank vs. TECIL Chemicals and | State Bank vs. HDFC Life Insurance | State Bank vs. Chembond Chemicals | State Bank vs. Tata Chemicals Limited |
Honeywell Automation vs. State Bank of | Honeywell Automation vs. Life Insurance | Honeywell Automation vs. HDFC Bank Limited | Honeywell Automation 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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