Correlation Between Punjab National and Can Fin
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By analyzing existing cross correlation between Punjab National Bank and Can Fin Homes, you can compare the effects of market volatilities on Punjab National and Can Fin 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 Punjab National with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab National and Can Fin.
Diversification Opportunities for Punjab National and Can Fin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Punjab and Can is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Punjab National Bank and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and Punjab National 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 Punjab National Bank are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of Punjab National i.e., Punjab National and Can Fin go up and down completely randomly.
Pair Corralation between Punjab National and Can Fin
Assuming the 90 days trading horizon Punjab National Bank is expected to generate 1.01 times more return on investment than Can Fin. However, Punjab National is 1.01 times more volatile than Can Fin Homes. It trades about -0.14 of its potential returns per unit of risk. Can Fin Homes is currently generating about -0.26 per unit of risk. If you would invest 10,176 in Punjab National Bank on October 30, 2024 and sell it today you would lose (625.00) from holding Punjab National Bank or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab National Bank vs. Can Fin Homes
Performance |
| Timeline |
| Punjab National Bank |
| Can Fin Homes |
Punjab National and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab National and Can Fin
The main advantage of trading using opposite Punjab National and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab National position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| Punjab National vs. V2 Retail Limited | Punjab National vs. Unitech Limited | Punjab National vs. Jaypee Infratech Limited | Punjab National vs. Akme Fintrade India |
| Can Fin vs. 63 moons technologies | Can Fin vs. PB Fintech Limited | Can Fin vs. Goldstone Technologies Limited | Can Fin vs. Generic Engineering Construction |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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