Correlation Between Punjab Sind and Centum Electronics
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By analyzing existing cross correlation between Punjab Sind Bank and Centum Electronics Limited, you can compare the effects of market volatilities on Punjab Sind and Centum Electronics 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 Centum Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Centum Electronics.
Diversification Opportunities for Punjab Sind and Centum Electronics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Punjab and Centum is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Centum Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centum Electronics 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 Centum Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centum Electronics has no effect on the direction of Punjab Sind i.e., Punjab Sind and Centum Electronics go up and down completely randomly.
Pair Corralation between Punjab Sind and Centum Electronics
Assuming the 90 days trading horizon Punjab Sind Bank is expected to under-perform the Centum Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Punjab Sind Bank is 1.42 times less risky than Centum Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The Centum Electronics Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 178,515 in Centum Electronics Limited on November 6, 2024 and sell it today you would lose (7,095) from holding Centum Electronics Limited or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab Sind Bank vs. Centum Electronics Limited
Performance |
| Timeline |
| Punjab Sind Bank |
| Centum Electronics |
Punjab Sind and Centum Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and Centum Electronics
The main advantage of trading using opposite Punjab Sind and Centum Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Centum Electronics 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 Centum Electronics will offset losses from the drop in Centum Electronics' long position.| Punjab Sind vs. ADF Foods Limited | Punjab Sind vs. ILFS Investment Managers | Punjab Sind vs. Patanjali Foods Limited | Punjab Sind vs. Jindal Poly Investment |
| Centum Electronics vs. Foods Inns Limited | Centum Electronics vs. Jayant Agro Organics | Centum Electronics vs. Jubilant Foodworks Limited | Centum Electronics vs. Kohinoor Foods 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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