Correlation Between Punjab Sind and Aptech
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By analyzing existing cross correlation between Punjab Sind Bank and Aptech Limited, you can compare the effects of market volatilities on Punjab Sind and Aptech 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 Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Aptech.
Diversification Opportunities for Punjab Sind and Aptech
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Punjab and Aptech is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech 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 Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Punjab Sind i.e., Punjab Sind and Aptech go up and down completely randomly.
Pair Corralation between Punjab Sind and Aptech
Assuming the 90 days trading horizon Punjab Sind Bank is expected to under-perform the Aptech. But the stock apears to be less risky and, when comparing its historical volatility, Punjab Sind Bank is 1.16 times less risky than Aptech. The stock trades about -0.08 of its potential returns per unit of risk. The Aptech Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 17,505 in Aptech Limited on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Aptech Limited or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab Sind Bank vs. Aptech Limited
Performance |
| Timeline |
| Punjab Sind Bank |
| Aptech Limited |
Punjab Sind and Aptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and Aptech
The main advantage of trading using opposite Punjab Sind and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.| Punjab Sind vs. Newgen Software Technologies | Punjab Sind vs. California Software | Punjab Sind vs. Alkali Metals Limited | Punjab Sind vs. Future Retail Limited |
| Aptech vs. HMT Limited | Aptech vs. KIOCL Limited | Aptech vs. Spentex Industries Limited | Aptech vs. Punjab Sind 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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