Correlation Between Punjab Sind and 3M India
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By analyzing existing cross correlation between Punjab Sind Bank and 3M India Limited, you can compare the effects of market volatilities on Punjab Sind and 3M India 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 Sind with a short position of 3M India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and 3M India.
Diversification Opportunities for Punjab Sind and 3M India
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Punjab and 3MINDIA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and 3M India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M India Limited and Punjab Sind 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 Sind Bank are associated (or correlated) with 3M India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M India Limited has no effect on the direction of Punjab Sind i.e., Punjab Sind and 3M India go up and down completely randomly.
Pair Corralation between Punjab Sind and 3M India
Assuming the 90 days trading horizon Punjab Sind Bank is expected to generate 1.24 times more return on investment than 3M India. However, Punjab Sind is 1.24 times more volatile than 3M India Limited. It trades about -0.07 of its potential returns per unit of risk. 3M India Limited is currently generating about -0.28 per unit of risk. If you would invest 5,200 in Punjab Sind Bank on September 1, 2024 and sell it today you would lose (198.00) from holding Punjab Sind Bank or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab Sind Bank vs. 3M India Limited
Performance |
| Timeline |
| Punjab Sind Bank |
| 3M India Limited |
Punjab Sind and 3M India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and 3M India
The main advantage of trading using opposite Punjab Sind and 3M India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, 3M India 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 3M India will offset losses from the drop in 3M India's long position.| Punjab Sind vs. Reliance Industries Limited | Punjab Sind vs. State Bank of | Punjab Sind vs. Oil Natural Gas |
| 3M India vs. Can Fin Homes | 3M India vs. Repco Home Finance | 3M India vs. Iris Clothings Limited | 3M India vs. Karur Vysya Bank |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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