Correlation Between CREDITACCESS GRAMEEN and PB Fintech
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By analyzing existing cross correlation between CREDITACCESS GRAMEEN LIMITED and PB Fintech Limited, you can compare the effects of market volatilities on CREDITACCESS GRAMEEN and PB Fintech 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 CREDITACCESS GRAMEEN with a short position of PB Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDITACCESS GRAMEEN and PB Fintech.
Diversification Opportunities for CREDITACCESS GRAMEEN and PB Fintech
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREDITACCESS and POLICYBZR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CREDITACCESS GRAMEEN LIMITED and PB Fintech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PB Fintech Limited and CREDITACCESS GRAMEEN 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 CREDITACCESS GRAMEEN LIMITED are associated (or correlated) with PB Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PB Fintech Limited has no effect on the direction of CREDITACCESS GRAMEEN i.e., CREDITACCESS GRAMEEN and PB Fintech go up and down completely randomly.
Pair Corralation between CREDITACCESS GRAMEEN and PB Fintech
Assuming the 90 days trading horizon CREDITACCESS GRAMEEN LIMITED is expected to generate 1.5 times more return on investment than PB Fintech. However, CREDITACCESS GRAMEEN is 1.5 times more volatile than PB Fintech Limited. It trades about 0.12 of its potential returns per unit of risk. PB Fintech Limited is currently generating about -0.29 per unit of risk. If you would invest 91,125 in CREDITACCESS GRAMEEN LIMITED on November 6, 2024 and sell it today you would earn a total of 10,545 from holding CREDITACCESS GRAMEEN LIMITED or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREDITACCESS GRAMEEN LIMITED vs. PB Fintech Limited
Performance |
| Timeline |
| CREDITACCESS GRAMEEN |
| PB Fintech Limited |
CREDITACCESS GRAMEEN and PB Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDITACCESS GRAMEEN and PB Fintech
The main advantage of trading using opposite CREDITACCESS GRAMEEN and PB Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDITACCESS GRAMEEN position performs unexpectedly, PB Fintech 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 PB Fintech will offset losses from the drop in PB Fintech's long position.| CREDITACCESS GRAMEEN vs. Navneet Education Limited | CREDITACCESS GRAMEEN vs. General Insurance | CREDITACCESS GRAMEEN vs. Edelweiss Financial Services | CREDITACCESS GRAMEEN vs. Punjab National Bank |
| PB Fintech vs. Central Bank of | PB Fintech vs. City Union Bank | PB Fintech vs. Banka BioLoo Limited | PB Fintech vs. Jindal Poly Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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