Correlation Between PB Fintech and VA Tech
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By analyzing existing cross correlation between PB Fintech Limited and VA Tech Wabag, you can compare the effects of market volatilities on PB Fintech and VA Tech 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 VA Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of PB Fintech and VA Tech.
Diversification Opportunities for PB Fintech and VA Tech
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between POLICYBZR and WABAG is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding PB Fintech Limited and VA Tech Wabag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VA Tech Wabag 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 VA Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VA Tech Wabag has no effect on the direction of PB Fintech i.e., PB Fintech and VA Tech go up and down completely randomly.
Pair Corralation between PB Fintech and VA Tech
Assuming the 90 days trading horizon PB Fintech is expected to generate 1.15 times less return on investment than VA Tech. But when comparing it to its historical volatility, PB Fintech Limited is 1.16 times less risky than VA Tech. It trades about 0.13 of its potential returns per unit of risk. VA Tech Wabag is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 49,690 in VA Tech Wabag on September 2, 2024 and sell it today you would earn a total of 129,800 from holding VA Tech Wabag or generate 261.22% 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. VA Tech Wabag
Performance |
| Timeline |
| PB Fintech Limited |
| VA Tech Wabag |
PB Fintech and VA Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PB Fintech and VA Tech
The main advantage of trading using opposite PB Fintech and VA Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PB Fintech position performs unexpectedly, VA Tech 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 VA Tech will offset losses from the drop in VA Tech'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 |
| VA Tech vs. Kingfa Science Technology | VA Tech vs. Rico Auto Industries | VA Tech vs. GACM Technologies Limited | VA Tech vs. COSMO FIRST 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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