Correlation Between Bandhan Bank and Persistent Systems
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By analyzing existing cross correlation between Bandhan Bank Limited and Persistent Systems Limited, you can compare the effects of market volatilities on Bandhan Bank and Persistent Systems 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 Bandhan Bank with a short position of Persistent Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bandhan Bank and Persistent Systems.
Diversification Opportunities for Bandhan Bank and Persistent Systems
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bandhan and Persistent is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bandhan Bank Limited and Persistent Systems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persistent Systems and Bandhan 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 Bandhan Bank Limited are associated (or correlated) with Persistent Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persistent Systems has no effect on the direction of Bandhan Bank i.e., Bandhan Bank and Persistent Systems go up and down completely randomly.
Pair Corralation between Bandhan Bank and Persistent Systems
Assuming the 90 days trading horizon Bandhan Bank Limited is expected to under-perform the Persistent Systems. But the stock apears to be less risky and, when comparing its historical volatility, Bandhan Bank Limited is 1.09 times less risky than Persistent Systems. The stock trades about -0.17 of its potential returns per unit of risk. The Persistent Systems Limited is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 536,000 in Persistent Systems Limited on September 4, 2024 and sell it today you would earn a total of 57,240 from holding Persistent Systems Limited or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bandhan Bank Limited vs. Persistent Systems Limited
Performance |
| Timeline |
| Bandhan Bank Limited |
| Persistent Systems |
Bandhan Bank and Persistent Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bandhan Bank and Persistent Systems
The main advantage of trading using opposite Bandhan Bank and Persistent Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bandhan Bank position performs unexpectedly, Persistent Systems 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 Persistent Systems will offset losses from the drop in Persistent Systems' long position.| Bandhan Bank vs. Dhunseri Investments Limited | Bandhan Bank vs. HT Media Limited | Bandhan Bank vs. MIRC Electronics Limited | Bandhan Bank vs. The Investment Trust |
| Persistent Systems vs. Apex Frozen Foods | Persistent Systems vs. Megastar Foods Limited | Persistent Systems vs. Cantabil Retail India | Persistent Systems vs. Cartrade Tech 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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