Correlation Between State Bank and UNITED INTERNET

Can any of the company-specific risk be diversified away by investing in both State Bank and UNITED INTERNET 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 State Bank and UNITED INTERNET into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between State Bank of and UNITED INTERNET N, you can compare the effects of market volatilities on State Bank and UNITED INTERNET 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 UNITED INTERNET. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and UNITED INTERNET.

Diversification Opportunities for State Bank and UNITED INTERNET

-0.44

Correlation Coefficient

State Bank  UNITED INTERNET

Very good diversification

The 3 months correlation between State and UNITED is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and UNITED INTERNET N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED INTERNET N 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 UNITED INTERNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED INTERNET N has no effect on the direction of State Bank i.e., State Bank and UNITED INTERNET go up and down completely randomly.

Pair Corralation between State Bank and UNITED INTERNET

Assuming the 90 days horizon State Bank of is expected to under-perform the UNITED INTERNET. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.57 times less risky than UNITED INTERNET. The stock trades about 0.0 of its potential returns per unit of risk. The UNITED INTERNET N is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,678  in UNITED INTERNET N on October 7, 2025 and sell it today you would earn a total of  176.00  from holding UNITED INTERNET N or generate 6.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.44%
Values	Daily Returns

State Bank of  vs.  UNITED INTERNET N

State Bank

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in State Bank of are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, State Bank may actually be approaching a critical reversion point that can send shares even higher in February 2026.

UNITED INTERNET N

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UNITED INTERNET N are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, UNITED INTERNET 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 State Bank and UNITED INTERNET

The main advantage of trading using opposite State Bank and UNITED INTERNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, UNITED INTERNET 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 UNITED INTERNET will offset losses from the drop in UNITED INTERNET's long position.

The idea behind State Bank of and UNITED INTERNET N 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.