Correlation Between Punjab Sind and Elgi Rubber
Specify exactly 2 symbols:
By analyzing existing cross correlation between Punjab Sind Bank and Elgi Rubber, you can compare the effects of market volatilities on Punjab Sind and Elgi Rubber 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 Elgi Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Elgi Rubber.
Diversification Opportunities for Punjab Sind and Elgi Rubber
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Punjab and Elgi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Elgi Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elgi Rubber 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 Elgi Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elgi Rubber has no effect on the direction of Punjab Sind i.e., Punjab Sind and Elgi Rubber go up and down completely randomly.
Pair Corralation between Punjab Sind and Elgi Rubber
Assuming the 90 days trading horizon Punjab Sind is expected to generate 2.58 times less return on investment than Elgi Rubber. But when comparing it to its historical volatility, Punjab Sind Bank is 1.75 times less risky than Elgi Rubber. It trades about 0.08 of its potential returns per unit of risk. Elgi Rubber is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,829 in Elgi Rubber on September 12, 2024 and sell it today you would earn a total of 1,088 from holding Elgi Rubber or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab Sind Bank vs. Elgi Rubber
Performance |
| Timeline |
| Punjab Sind Bank |
| Elgi Rubber |
Punjab Sind and Elgi Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and Elgi Rubber
The main advantage of trading using opposite Punjab Sind and Elgi Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Elgi Rubber 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 Elgi Rubber will offset losses from the drop in Elgi Rubber's long position.| Punjab Sind vs. Generic Engineering Construction | Punjab Sind vs. EIH Associated Hotels | Punjab Sind vs. Taj GVK Hotels | Punjab Sind vs. Viceroy Hotels Limited |
| Elgi Rubber vs. Hemisphere Properties India | Elgi Rubber vs. Indo Borax Chemicals | Elgi Rubber vs. Kingfa Science Technology | Elgi Rubber vs. Alkali Metals 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |