Correlation Between ANT and Punjab Chemicals
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By analyzing existing cross correlation between ANT and Punjab Chemicals Crop, you can compare the effects of market volatilities on ANT and Punjab Chemicals 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 ANT with a short position of Punjab Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Punjab Chemicals.
Diversification Opportunities for ANT and Punjab Chemicals
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANT and Punjab is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Punjab Chemicals Crop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Chemicals Crop and ANT 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 ANT are associated (or correlated) with Punjab Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Chemicals Crop has no effect on the direction of ANT i.e., ANT and Punjab Chemicals go up and down completely randomly.
Pair Corralation between ANT and Punjab Chemicals
Assuming the 90 days trading horizon ANT is expected to generate 20.83 times more return on investment than Punjab Chemicals. However, ANT is 20.83 times more volatile than Punjab Chemicals Crop. It trades about 0.1 of its potential returns per unit of risk. Punjab Chemicals Crop is currently generating about 0.01 per unit of risk. If you would invest 288.00 in ANT on October 14, 2024 and sell it today you would lose (141.00) from holding ANT or give up 48.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 61.52% |
| Values | Daily Returns |
ANT vs. Punjab Chemicals Crop
Performance |
| Timeline |
| ANT |
| Punjab Chemicals Crop |
ANT and Punjab Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Punjab Chemicals
The main advantage of trading using opposite ANT and Punjab Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Punjab Chemicals 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 Punjab Chemicals will offset losses from the drop in Punjab Chemicals' long position.The idea behind ANT and Punjab Chemicals Crop 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.| Punjab Chemicals vs. Tamilnad Mercantile Bank | Punjab Chemicals vs. Spencers Retail Limited | Punjab Chemicals vs. V Mart Retail Limited | Punjab Chemicals vs. Hybrid Financial Services |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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