Correlation Between DCM Financial and Punjab National
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By analyzing existing cross correlation between DCM Financial Services and Punjab National Bank, you can compare the effects of market volatilities on DCM Financial and Punjab National 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 DCM Financial with a short position of Punjab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCM Financial and Punjab National.
Diversification Opportunities for DCM Financial and Punjab National
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between DCM and Punjab is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding DCM Financial Services and Punjab National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab National Bank and DCM Financial 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 DCM Financial Services are associated (or correlated) with Punjab National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab National Bank has no effect on the direction of DCM Financial i.e., DCM Financial and Punjab National go up and down completely randomly.
Pair Corralation between DCM Financial and Punjab National
Assuming the 90 days trading horizon DCM Financial Services is expected to generate 1.65 times more return on investment than Punjab National. However, DCM Financial is 1.65 times more volatile than Punjab National Bank. It trades about -0.11 of its potential returns per unit of risk. Punjab National Bank is currently generating about -0.18 per unit of risk. If you would invest 756.00 in DCM Financial Services on October 12, 2024 and sell it today you would lose (46.00) from holding DCM Financial Services or give up 6.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
DCM Financial Services vs. Punjab National Bank
Performance |
| Timeline |
| DCM Financial Services |
| Punjab National Bank |
DCM Financial and Punjab National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DCM Financial and Punjab National
The main advantage of trading using opposite DCM Financial and Punjab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCM Financial position performs unexpectedly, Punjab National 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 National will offset losses from the drop in Punjab National's long position.| DCM Financial vs. Akums Drugs and | DCM Financial vs. Golden Tobacco Limited | DCM Financial vs. Beta Drugs | DCM Financial vs. Foods Inns Limited |
| Punjab National vs. Karur Vysya Bank | Punjab National vs. Silly Monks Entertainment | Punjab National vs. Union Bank of | Punjab National vs. DCM Financial Services |
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