Correlation Between PB Fintech and ABM International
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By analyzing existing cross correlation between PB Fintech Limited and ABM International Limited, you can compare the effects of market volatilities on PB Fintech and ABM International 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 PB Fintech with a short position of ABM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PB Fintech and ABM International.
Diversification Opportunities for PB Fintech and ABM International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POLICYBZR and ABM is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PB Fintech Limited and ABM International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABM International and PB Fintech 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 PB Fintech Limited are associated (or correlated) with ABM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABM International has no effect on the direction of PB Fintech i.e., PB Fintech and ABM International go up and down completely randomly.
Pair Corralation between PB Fintech and ABM International
Assuming the 90 days trading horizon PB Fintech Limited is expected to generate 0.53 times more return on investment than ABM International. However, PB Fintech Limited is 1.9 times less risky than ABM International. It trades about 0.22 of its potential returns per unit of risk. ABM International Limited is currently generating about -0.31 per unit of risk. If you would invest 170,115 in PB Fintech Limited on September 2, 2024 and sell it today you would earn a total of 19,275 from holding PB Fintech Limited or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PB Fintech Limited vs. ABM International Limited
Performance |
| Timeline |
| PB Fintech Limited |
| ABM International |
PB Fintech and ABM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PB Fintech and ABM International
The main advantage of trading using opposite PB Fintech and ABM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PB Fintech position performs unexpectedly, ABM International 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 ABM International will offset losses from the drop in ABM International's long position.| PB Fintech vs. Krebs Biochemicals and | PB Fintech vs. Hindcon Chemicals Limited | PB Fintech vs. Reliance Home Finance | PB Fintech vs. Embassy Office Parks |
| ABM International vs. NMDC Limited | ABM International vs. Steel Authority of | ABM International vs. Embassy Office Parks | ABM International vs. Gujarat Narmada Valley |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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