Correlation Between Punjab National and Mangalam Drugs
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By analyzing existing cross correlation between Punjab National Bank and Mangalam Drugs And, you can compare the effects of market volatilities on Punjab National and Mangalam Drugs 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 Mangalam Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab National and Mangalam Drugs.
Diversification Opportunities for Punjab National and Mangalam Drugs
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Punjab and Mangalam is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Punjab National Bank and Mangalam Drugs And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangalam Drugs And 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 Mangalam Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangalam Drugs And has no effect on the direction of Punjab National i.e., Punjab National and Mangalam Drugs go up and down completely randomly.
Pair Corralation between Punjab National and Mangalam Drugs
Assuming the 90 days trading horizon Punjab National Bank is expected to generate 0.73 times more return on investment than Mangalam Drugs. However, Punjab National Bank is 1.37 times less risky than Mangalam Drugs. It trades about -0.12 of its potential returns per unit of risk. Mangalam Drugs And is currently generating about -0.19 per unit of risk. If you would invest 10,490 in Punjab National Bank on October 30, 2024 and sell it today you would lose (939.00) from holding Punjab National Bank or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Punjab National Bank vs. Mangalam Drugs And
Performance |
| Timeline |
| Punjab National Bank |
| Mangalam Drugs And |
Punjab National and Mangalam Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab National and Mangalam Drugs
The main advantage of trading using opposite Punjab National and Mangalam Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab National position performs unexpectedly, Mangalam Drugs 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 Mangalam Drugs will offset losses from the drop in Mangalam Drugs' 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 |
| Mangalam Drugs vs. Viceroy Hotels Limited | Mangalam Drugs vs. Lemon Tree Hotels | Mangalam Drugs vs. Juniper Hotels | Mangalam Drugs vs. Chalet Hotels 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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