Correlation Between Unitech and Punjab National
Specify exactly 2 symbols:
By analyzing existing cross correlation between Unitech Limited and Punjab National Bank, you can compare the effects of market volatilities on Unitech and Punjab National 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 Unitech with a short position of Punjab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unitech and Punjab National.
Diversification Opportunities for Unitech and Punjab National
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Unitech and Punjab is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Unitech Limited and Punjab National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab National Bank and Unitech 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 Unitech Limited are associated (or correlated) with Punjab National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab National Bank has no effect on the direction of Unitech i.e., Unitech and Punjab National go up and down completely randomly.
Pair Corralation between Unitech and Punjab National
Assuming the 90 days trading horizon Unitech Limited is expected to under-perform the Punjab National. In addition to that, Unitech is 1.31 times more volatile than Punjab National Bank. It trades about -0.05 of its total potential returns per unit of risk. Punjab National Bank is currently generating about -0.04 per unit of volatility. If you would invest 10,174 in Punjab National Bank on November 7, 2024 and sell it today you would lose (269.00) from holding Punjab National Bank or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Unitech Limited vs. Punjab National Bank
Performance |
| Timeline |
| Unitech Limited |
| Punjab National Bank |
Unitech and Punjab National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unitech and Punjab National
The main advantage of trading using opposite Unitech and Punjab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unitech position performs unexpectedly, Punjab National 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 Punjab National will offset losses from the drop in Punjab National's long position.| Unitech vs. Kaynes Technology India | Unitech vs. Garware Hi Tech Films | Unitech vs. Tamilnadu Telecommunication Limited | Unitech vs. Sonata Software Limited |
| Punjab National vs. Alkali Metals Limited | Punjab National vs. Lakshmi Finance Industrial | Punjab National vs. Indian Metals Ferro | Punjab National vs. Ratnamani Metals Tubes |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |