Correlation Between ZF Commercial and Punjab National
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By analyzing existing cross correlation between ZF Commercial Vehicle and Punjab National Bank, you can compare the effects of market volatilities on ZF Commercial 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 ZF Commercial with a short position of Punjab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZF Commercial and Punjab National.
Diversification Opportunities for ZF Commercial and Punjab National
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZFCVINDIA and Punjab is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ZF Commercial Vehicle 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 ZF Commercial 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 ZF Commercial Vehicle 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 ZF Commercial i.e., ZF Commercial and Punjab National go up and down completely randomly.
Pair Corralation between ZF Commercial and Punjab National
Assuming the 90 days trading horizon ZF Commercial Vehicle is expected to under-perform the Punjab National. But the stock apears to be less risky and, when comparing its historical volatility, ZF Commercial Vehicle is 1.06 times less risky than Punjab National. The stock trades about -0.08 of its potential returns per unit of risk. The Punjab National Bank is currently generating about -0.04 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZF Commercial Vehicle vs. Punjab National Bank
Performance |
| Timeline |
| ZF Commercial Vehicle |
| Punjab National Bank |
ZF Commercial and Punjab National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZF Commercial and Punjab National
The main advantage of trading using opposite ZF Commercial and Punjab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZF Commercial 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.| ZF Commercial vs. Lemon Tree Hotels | ZF Commercial vs. Southern Petrochemicals Industries | ZF Commercial vs. Asian Hotels Limited | ZF Commercial vs. Shree Pushkar Chemicals |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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