Correlation Between Shipping and PB Fintech

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Can any of the company-specific risk be diversified away by investing in both Shipping and PB Fintech 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 Shipping and PB Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shipping and PB Fintech Limited, you can compare the effects of market volatilities on Shipping and PB Fintech 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 Shipping with a short position of PB Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and PB Fintech.

Diversification Opportunities for Shipping and PB Fintech

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between Shipping and POLICYBZR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shipping and PB Fintech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PB Fintech Limited and Shipping 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 Shipping are associated (or correlated) with PB Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PB Fintech Limited has no effect on the direction of Shipping i.e., Shipping and PB Fintech go up and down completely randomly.

Pair Corralation between Shipping and PB Fintech

Assuming the 90 days trading horizon Shipping is expected to generate 3.65 times less return on investment than PB Fintech. In addition to that, Shipping is 1.33 times more volatile than PB Fintech Limited. It trades about 0.03 of its total potential returns per unit of risk. PB Fintech Limited is currently generating about 0.13 per unit of volatility. If you would invest  129,335  in PB Fintech Limited on September 3, 2024 and sell it today you would earn a total of  60,055  from holding PB Fintech Limited or generate 46.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Shipping  vs.  PB Fintech Limited

 Performance 
       Timeline  
Shipping 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
PB Fintech Limited 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in PB Fintech Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, PB Fintech may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Shipping and PB Fintech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shipping and PB Fintech

The main advantage of trading using opposite Shipping and PB Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping position performs unexpectedly, PB Fintech 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 PB Fintech will offset losses from the drop in PB Fintech's long position.
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The idea behind Shipping and PB Fintech Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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