Correlation Between Punjab National and Premier Polyfilm
Specify exactly 2 symbols:
By analyzing existing cross correlation between Punjab National Bank and Premier Polyfilm Limited, you can compare the effects of market volatilities on Punjab National and Premier Polyfilm 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 Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab National and Premier Polyfilm.
Diversification Opportunities for Punjab National and Premier Polyfilm
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Punjab and Premier is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Punjab National Bank and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm 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 Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of Punjab National i.e., Punjab National and Premier Polyfilm go up and down completely randomly.
Pair Corralation between Punjab National and Premier Polyfilm
Assuming the 90 days trading horizon Punjab National Bank is expected to generate 0.56 times more return on investment than Premier Polyfilm. However, Punjab National Bank is 1.77 times less risky than Premier Polyfilm. It trades about -0.02 of its potential returns per unit of risk. Premier Polyfilm Limited is currently generating about -0.03 per unit of risk. If you would invest 10,138 in Punjab National Bank on October 24, 2024 and sell it today you would lose (106.00) from holding Punjab National Bank or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Punjab National Bank vs. Premier Polyfilm Limited
Performance |
| Timeline |
| Punjab National Bank |
| Premier Polyfilm |
Punjab National and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab National and Premier Polyfilm
The main advantage of trading using opposite Punjab National and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab National position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| Punjab National vs. Reliance Industries Limited | Punjab National vs. HDFC Bank Limited | Punjab National vs. Kingfa Science Technology | Punjab National vs. Rico Auto Industries |
| Premier Polyfilm vs. Neogen Chemicals Limited | Premier Polyfilm vs. JGCHEMICALS LIMITED | Premier Polyfilm vs. Chembond Chemicals | Premier Polyfilm vs. S P Apparels |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |