Correlation Between Megastar Foods and Punjab Sind
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By analyzing existing cross correlation between Megastar Foods Limited and Punjab Sind Bank, you can compare the effects of market volatilities on Megastar Foods 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 Megastar Foods with a short position of Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megastar Foods and Punjab Sind.
Diversification Opportunities for Megastar Foods and Punjab Sind
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Megastar and Punjab is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Megastar Foods 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 Megastar Foods 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 Megastar Foods 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 Megastar Foods i.e., Megastar Foods and Punjab Sind go up and down completely randomly.
Pair Corralation between Megastar Foods and Punjab Sind
Assuming the 90 days trading horizon Megastar Foods Limited is expected to generate 1.08 times more return on investment than Punjab Sind. However, Megastar Foods is 1.08 times more volatile than Punjab Sind Bank. It trades about 0.16 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about 0.0 per unit of risk. If you would invest 22,876 in Megastar Foods Limited on October 20, 2024 and sell it today you would earn a total of 3,340 from holding Megastar Foods Limited or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Megastar Foods Limited vs. Punjab Sind Bank
Performance |
| Timeline |
| Megastar Foods |
| Punjab Sind Bank |
Megastar Foods and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megastar Foods and Punjab Sind
The main advantage of trading using opposite Megastar Foods and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megastar Foods 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.| Megastar Foods vs. Univa Foods Limited | Megastar Foods vs. LT Foods Limited | Megastar Foods vs. Laxmi Organic Industries | Megastar Foods vs. Osia Hyper Retail |
| Punjab Sind vs. Patanjali Foods Limited | Punjab Sind vs. Aarti Drugs Limited | Punjab Sind vs. Megastar Foods Limited | Punjab Sind vs. The Hi Tech Gears |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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