Correlation Between Grand Vision and State Bank

Can any of the company-specific risk be diversified away by investing in both Grand Vision and State Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grand Vision and State Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Vision Media and State Bank of, you can compare the effects of market volatilities on Grand Vision 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 Grand Vision with a short position of State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and State Bank.

Diversification Opportunities for Grand Vision and State Bank

-0.3

Correlation Coefficient

Grand Vision  State Bank

Very good diversification

The 3 months correlation between Grand and State is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank and Grand Vision 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 Grand Vision Media 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 Grand Vision i.e., Grand Vision and State Bank go up and down completely randomly.

Pair Corralation between Grand Vision and State Bank

Assuming the 90 days trading horizon Grand Vision Media is expected to generate 21.46 times more return on investment than State Bank. However, Grand Vision is 21.46 times more volatile than State Bank of. It trades about 0.05 of its potential returns per unit of risk. State Bank of is currently generating about 0.05 per unit of risk. If you would invest  20.00  in Grand Vision Media on September 5, 2024 and sell it today you would earn a total of  78.00  from holding Grand Vision Media or generate 390.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Grand Vision Media  vs.  State Bank of

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

State Bank

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in State Bank of are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, State Bank is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Grand Vision and State Bank

The main advantage of trading using opposite Grand Vision and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision 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.

The idea behind Grand Vision Media and State Bank of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..