Correlation Between PB Fintech and Gujarat Lease
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By analyzing existing cross correlation between PB Fintech Limited and Gujarat Lease Financing, you can compare the effects of market volatilities on PB Fintech and Gujarat Lease 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 Gujarat Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of PB Fintech and Gujarat Lease.
Diversification Opportunities for PB Fintech and Gujarat Lease
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between POLICYBZR and Gujarat is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PB Fintech Limited and Gujarat Lease Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Lease Financing 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 Gujarat Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Lease Financing has no effect on the direction of PB Fintech i.e., PB Fintech and Gujarat Lease go up and down completely randomly.
Pair Corralation between PB Fintech and Gujarat Lease
Assuming the 90 days trading horizon PB Fintech Limited is expected to generate 0.86 times more return on investment than Gujarat Lease. However, PB Fintech Limited is 1.16 times less risky than Gujarat Lease. It trades about 0.13 of its potential returns per unit of risk. Gujarat Lease Financing is currently generating about 0.08 per unit of risk. If you would invest 46,610 in PB Fintech Limited on September 30, 2024 and sell it today you would earn a total of 158,665 from holding PB Fintech Limited or generate 340.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
PB Fintech Limited vs. Gujarat Lease Financing
Performance |
| Timeline |
| PB Fintech Limited |
| Gujarat Lease Financing |
PB Fintech and Gujarat Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PB Fintech and Gujarat Lease
The main advantage of trading using opposite PB Fintech and Gujarat Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PB Fintech position performs unexpectedly, Gujarat Lease 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 Gujarat Lease will offset losses from the drop in Gujarat Lease's long position.| PB Fintech vs. Automotive Stampings and | PB Fintech vs. The Orissa Minerals | PB Fintech vs. Malu Paper Mills | PB Fintech vs. Kingfa Science Technology |
| Gujarat Lease vs. Kaushalya Infrastructure Development | Gujarat Lease vs. Tarapur Transformers Limited | Gujarat Lease vs. Kingfa Science Technology | Gujarat Lease vs. Rico Auto Industries |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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