Correlation Between Punjab Sind and Sasken Technologies
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By analyzing existing cross correlation between Punjab Sind Bank and Sasken Technologies Limited, you can compare the effects of market volatilities on Punjab Sind and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Sasken Technologies.
Diversification Opportunities for Punjab Sind and Sasken Technologies
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Punjab and Sasken is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of Punjab Sind i.e., Punjab Sind and Sasken Technologies go up and down completely randomly.
Pair Corralation between Punjab Sind and Sasken Technologies
Assuming the 90 days trading horizon Punjab Sind Bank is expected to under-perform the Sasken Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Punjab Sind Bank is 1.36 times less risky than Sasken Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Sasken Technologies Limited is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 172,895 in Sasken Technologies Limited on September 5, 2024 and sell it today you would earn a total of 47,760 from holding Sasken Technologies Limited or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Punjab Sind Bank vs. Sasken Technologies Limited
Performance |
| Timeline |
| Punjab Sind Bank |
| Sasken Technologies |
Punjab Sind and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Punjab Sind and Sasken Technologies
The main advantage of trading using opposite Punjab Sind and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| Punjab Sind vs. Reliance Industries Limited | Punjab Sind vs. Tata Consultancy Services | Punjab Sind vs. HDFC Bank Limited | Punjab Sind vs. Bharti Airtel Limited |
| Sasken Technologies vs. POWERGRID Infrastructure Investment | Sasken Technologies vs. ILFS Investment Managers | Sasken Technologies vs. The Investment Trust | Sasken Technologies vs. SIL Investments 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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