Correlation Between Golden Tobacco and Punjab Sind
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By analyzing existing cross correlation between Golden Tobacco Limited and Punjab Sind Bank, you can compare the effects of market volatilities on Golden Tobacco 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 Golden Tobacco with a short position of Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Tobacco and Punjab Sind.
Diversification Opportunities for Golden Tobacco and Punjab Sind
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Punjab is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco 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 Golden Tobacco i.e., Golden Tobacco and Punjab Sind go up and down completely randomly.
Pair Corralation between Golden Tobacco and Punjab Sind
Assuming the 90 days trading horizon Golden Tobacco is expected to generate 1.11 times less return on investment than Punjab Sind. But when comparing it to its historical volatility, Golden Tobacco Limited is 1.01 times less risky than Punjab Sind. It trades about 0.19 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,743 in Punjab Sind Bank on September 15, 2024 and sell it today you would earn a total of 456.00 from holding Punjab Sind Bank or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Tobacco Limited vs. Punjab Sind Bank
Performance |
| Timeline |
| Golden Tobacco |
| Punjab Sind Bank |
Golden Tobacco and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Tobacco and Punjab Sind
The main advantage of trading using opposite Golden Tobacco and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Tobacco 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.| Golden Tobacco vs. Reliance Industries Limited | Golden Tobacco vs. Oil Natural Gas | Golden Tobacco vs. ICICI Bank Limited | Golden Tobacco vs. Bharti Airtel Limited |
| Punjab Sind vs. Ratnamani Metals Tubes | Punjab Sind vs. Hisar Metal Industries | Punjab Sind vs. Golden Tobacco Limited | Punjab Sind vs. V2 Retail 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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