Correlation Between POWERGRID Infrastructure and Punjab Sind
Specify exactly 2 symbols:
By analyzing existing cross correlation between POWERGRID Infrastructure Investment and Punjab Sind Bank, you can compare the effects of market volatilities on POWERGRID Infrastructure 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 POWERGRID Infrastructure with a short position of Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Punjab Sind.
Diversification Opportunities for POWERGRID Infrastructure and Punjab Sind
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POWERGRID and Punjab is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves 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 POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment 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 POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Punjab Sind go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Punjab Sind
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to under-perform the Punjab Sind. But the stock apears to be less risky and, when comparing its historical volatility, POWERGRID Infrastructure Investment is 4.54 times less risky than Punjab Sind. The stock trades about -0.12 of its potential returns per unit of risk. The Punjab Sind Bank is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,123 in Punjab Sind Bank on September 28, 2024 and sell it today you would earn a total of 1,680 from holding Punjab Sind Bank or generate 53.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. Punjab Sind Bank
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Punjab Sind Bank |
POWERGRID Infrastructure and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Punjab Sind
The main advantage of trading using opposite POWERGRID Infrastructure and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure 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.The idea behind POWERGRID Infrastructure Investment and Punjab Sind Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Punjab Sind vs. Network18 Media Investments | Punjab Sind vs. FCS Software Solutions | Punjab Sind vs. POWERGRID Infrastructure Investment | Punjab Sind vs. R S Software |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |