Correlation Between PSG FINANCIAL and AFREXIMBANK
Can any of the company-specific risk be diversified away by investing in both PSG FINANCIAL and AFREXIMBANK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PSG FINANCIAL and AFREXIMBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSG FINANCIAL SERVICES and AFREXIMBANK, you can compare the effects of market volatilities on PSG FINANCIAL and AFREXIMBANK 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 PSG FINANCIAL with a short position of AFREXIMBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSG FINANCIAL and AFREXIMBANK.
Diversification Opportunities for PSG FINANCIAL and AFREXIMBANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PSG and AFREXIMBANK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PSG FINANCIAL SERVICES and AFREXIMBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFREXIMBANK and PSG FINANCIAL 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 PSG FINANCIAL SERVICES are associated (or correlated) with AFREXIMBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFREXIMBANK has no effect on the direction of PSG FINANCIAL i.e., PSG FINANCIAL and AFREXIMBANK go up and down completely randomly.
Pair Corralation between PSG FINANCIAL and AFREXIMBANK
If you would invest 270.00 in AFREXIMBANK on November 4, 2024 and sell it today you would earn a total of 0.00 from holding AFREXIMBANK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PSG FINANCIAL SERVICES vs. AFREXIMBANK
Performance |
| Timeline |
| PSG FINANCIAL SERVICES |
| AFREXIMBANK |
PSG FINANCIAL and AFREXIMBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSG FINANCIAL and AFREXIMBANK
The main advantage of trading using opposite PSG FINANCIAL and AFREXIMBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSG FINANCIAL position performs unexpectedly, AFREXIMBANK 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 AFREXIMBANK will offset losses from the drop in AFREXIMBANK's long position.| PSG FINANCIAL vs. ABC BANKING PORATION | PSG FINANCIAL vs. CIM FINANCIAL SERVICES | PSG FINANCIAL vs. AFREXIMBANK | PSG FINANCIAL vs. MCB INDIA SOVEREIGN |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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