Correlation Between COSMO FIRST and Punjab Sind
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By analyzing existing cross correlation between COSMO FIRST LIMITED and Punjab Sind Bank, you can compare the effects of market volatilities on COSMO FIRST and Punjab Sind 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 COSMO FIRST with a short position of Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and Punjab Sind.
Diversification Opportunities for COSMO FIRST and Punjab Sind
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between COSMO and Punjab is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST LIMITED and Punjab Sind Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Sind Bank and COSMO FIRST 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 COSMO FIRST LIMITED are associated (or correlated) with Punjab Sind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Sind Bank has no effect on the direction of COSMO FIRST i.e., COSMO FIRST and Punjab Sind go up and down completely randomly.
Pair Corralation between COSMO FIRST and Punjab Sind
Assuming the 90 days trading horizon COSMO FIRST is expected to generate 1.84 times less return on investment than Punjab Sind. But when comparing it to its historical volatility, COSMO FIRST LIMITED is 1.27 times less risky than Punjab Sind. It trades about 0.03 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,167 in Punjab Sind Bank on September 23, 2024 and sell it today you would earn a total of 1,706 from holding Punjab Sind Bank or generate 53.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. Punjab Sind Bank
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| Punjab Sind Bank |
COSMO FIRST and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and Punjab Sind
The main advantage of trading using opposite COSMO FIRST and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST position performs unexpectedly, Punjab Sind 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 Sind will offset losses from the drop in Punjab Sind's long position.| COSMO FIRST vs. Kohinoor Foods Limited | COSMO FIRST vs. Action Construction Equipment | COSMO FIRST vs. LT Foods Limited | COSMO FIRST vs. Shyam Metalics and |
| Punjab Sind vs. Kingfa Science Technology | Punjab Sind vs. Rico Auto Industries | Punjab Sind vs. GACM Technologies Limited | Punjab Sind vs. COSMO FIRST LIMITED |
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