Correlation Between Punjab Sind and Iris Clothings
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By analyzing existing cross correlation between Punjab Sind Bank and Iris Clothings Limited, you can compare the effects of market volatilities on Punjab Sind and Iris Clothings 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 Iris Clothings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Iris Clothings.
Diversification Opportunities for Punjab Sind and Iris Clothings
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Punjab and Iris is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Iris Clothings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iris Clothings 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 Iris Clothings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iris Clothings has no effect on the direction of Punjab Sind i.e., Punjab Sind and Iris Clothings go up and down completely randomly.
Pair Corralation between Punjab Sind and Iris Clothings
Assuming the 90 days trading horizon Punjab Sind Bank is expected to generate 1.0 times more return on investment than Iris Clothings. However, Punjab Sind Bank is 1.0 times less risky than Iris Clothings. It trades about 0.25 of its potential returns per unit of risk. Iris Clothings Limited is currently generating about 0.13 per unit of risk. If you would invest 4,713 in Punjab Sind Bank on September 14, 2024 and sell it today you would earn a total of 541.00 from holding Punjab Sind Bank or generate 11.48% 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. Iris Clothings Limited
Performance |
| Timeline |
| Punjab Sind Bank |
| Iris Clothings |
Punjab Sind and Iris Clothings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and Iris Clothings
The main advantage of trading using opposite Punjab Sind and Iris Clothings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Iris Clothings 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 Iris Clothings will offset losses from the drop in Iris Clothings' long position.| Punjab Sind vs. Hindustan Media Ventures | Punjab Sind vs. Indian Metals Ferro | Punjab Sind vs. Nahar Industrial Enterprises | Punjab Sind vs. Manaksia Coated Metals |
| Iris Clothings vs. KIOCL Limited | Iris Clothings vs. Spentex Industries Limited | Iris Clothings vs. Punjab Sind Bank | Iris Clothings vs. ITI 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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