Correlation Between Punjab National and Gangotri Textiles
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By analyzing existing cross correlation between Punjab National Bank and Gangotri Textiles Limited, you can compare the effects of market volatilities on Punjab National and Gangotri Textiles 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 Gangotri Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab National and Gangotri Textiles.
Diversification Opportunities for Punjab National and Gangotri Textiles
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Punjab and Gangotri is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Punjab National Bank and Gangotri Textiles Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gangotri Textiles 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 Gangotri Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gangotri Textiles has no effect on the direction of Punjab National i.e., Punjab National and Gangotri Textiles go up and down completely randomly.
Pair Corralation between Punjab National and Gangotri Textiles
Assuming the 90 days trading horizon Punjab National Bank is expected to generate 1.13 times more return on investment than Gangotri Textiles. However, Punjab National is 1.13 times more volatile than Gangotri Textiles Limited. It trades about 0.07 of its potential returns per unit of risk. Gangotri Textiles Limited is currently generating about 0.01 per unit of risk. If you would invest 5,557 in Punjab National Bank on October 11, 2024 and sell it today you would earn a total of 4,646 from holding Punjab National Bank or generate 83.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.38% |
| Values | Daily Returns |
Punjab National Bank vs. Gangotri Textiles Limited
Performance |
| Timeline |
| Punjab National Bank |
| Gangotri Textiles |
Punjab National and Gangotri Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab National and Gangotri Textiles
The main advantage of trading using opposite Punjab National and Gangotri Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab National position performs unexpectedly, Gangotri Textiles 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 Gangotri Textiles will offset losses from the drop in Gangotri Textiles' long position.| Punjab National vs. Karur Vysya Bank | Punjab National vs. Silly Monks Entertainment | Punjab National vs. Union Bank of | Punjab National vs. DCM Financial Services |
| Gangotri Textiles vs. Punjab National Bank | Gangotri Textiles vs. Motilal Oswal Financial | Gangotri Textiles vs. Allied Blenders Distillers | Gangotri Textiles vs. CREDITACCESS GRAMEEN 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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