Bank of Punjab (Pakistan) Market Value
| BOP Stock | 9.81 0.23 2.29% |
| Symbol | Bank |
Bank of Punjab 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Bank of Punjab's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Bank of Punjab.
| 12/24/2024 |
| 01/23/2025 |
If you would invest 0.00 in Bank of Punjab on December 24, 2024 and sell it all today you would earn a total of 0.00 from holding Bank of Punjab or generate 0.0% return on investment in Bank of Punjab over 30 days. Bank of Punjab is related to or competes with Pak Datacom, Wah Nobel, Ittehad Chemicals, Oil, Dost Steels, and Nimir Industrial. More
Bank of Punjab Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Bank of Punjab's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Bank of Punjab upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.71 | |||
| Information Ratio | 0.2325 | |||
| Maximum Drawdown | 22.96 | |||
| Value At Risk | (3.95) | |||
| Potential Upside | 10.44 |
Bank of Punjab Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Bank of Punjab's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Bank of Punjab's standard deviation. In reality, there are many statistical measures that can use Bank of Punjab historical prices to predict the future Bank of Punjab's volatility.| Risk Adjusted Performance | 0.2113 | |||
| Jensen Alpha | 0.9472 | |||
| Total Risk Alpha | 0.8521 | |||
| Sortino Ratio | 0.3502 | |||
| Treynor Ratio | 0.8984 |
Bank of Punjab Backtested Returns
Bank of Punjab is somewhat reliable given 3 months investment horizon. Bank of Punjab secures Sharpe Ratio (or Efficiency) of 0.24, which signifies that the company had a 0.24 % return per unit of risk over the last 3 months. We were able to interpolate data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.01% are justified by taking the suggested risk. Use Bank of Punjab Risk Adjusted Performance of 0.2113, mean deviation of 2.8, and Downside Deviation of 2.71 to evaluate company specific risk that cannot be diversified away. Bank of Punjab holds a performance score of 19 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 1.08, which signifies a somewhat significant risk relative to the market. Bank of Punjab returns are very sensitive to returns on the market. As the market goes up or down, Bank of Punjab is expected to follow. Use Bank of Punjab maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside , to analyze future returns on Bank of Punjab.
Auto-correlation | 0.22 |
Weak predictability
Bank of Punjab has weak predictability. Overlapping area represents the amount of predictability between Bank of Punjab time series from 24th of December 2024 to 8th of January 2025 and 8th of January 2025 to 23rd of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Bank of Punjab price movement. The serial correlation of 0.22 indicates that over 22.0% of current Bank of Punjab price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.22 | |
| Spearman Rank Test | -0.33 | |
| Residual Average | 0.0 | |
| Price Variance | 0.02 |
Bank of Punjab lagged returns against current returns
Autocorrelation, which is Bank of Punjab stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Bank of Punjab's stock expected returns. We can calculate the autocorrelation of Bank of Punjab returns to help us make a trade decision. For example, suppose you find that Bank of Punjab has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Bank of Punjab regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Bank of Punjab stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Bank of Punjab stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Bank of Punjab stock over time.
Current vs Lagged Prices |
| Timeline |
Bank of Punjab Lagged Returns
When evaluating Bank of Punjab's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Bank of Punjab stock have on its future price. Bank of Punjab autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Bank of Punjab autocorrelation shows the relationship between Bank of Punjab stock current value and its past values and can show if there is a momentum factor associated with investing in Bank of Punjab.
Regressed Prices |
| Timeline |
Pair Trading with Bank of Punjab
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Bank of Punjab position performs unexpectedly, the other equity 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 Bank of Punjab will appreciate offsetting losses from the drop in the long position's value.Moving together with Bank Stock
| 0.9 | UBL | United Bank | PairCorr |
| 0.93 | BAFL | Bank Alfalah Earnings Call This Week | PairCorr |
| 0.87 | ABL | Allied Bank | PairCorr |
The ability to find closely correlated positions to Bank of Punjab could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of Punjab when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Bank of Punjab - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Bank of Punjab to buy it.
The correlation of Bank of Punjab is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Bank of Punjab moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of Punjab moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Bank of Punjab can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Bank Stock Analysis
When running Bank of Punjab's price analysis, check to measure Bank of Punjab's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bank of Punjab is operating at the current time. Most of Bank of Punjab's value examination focuses on studying past and present price action to predict the probability of Bank of Punjab's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of Punjab's price. Additionally, you may evaluate how the addition of Bank of Punjab to your portfolios can decrease your overall portfolio volatility.