Correlation Between MIRC Electronics and Punjab National
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By analyzing existing cross correlation between MIRC Electronics Limited and Punjab National Bank, you can compare the effects of market volatilities on MIRC Electronics 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 MIRC Electronics with a short position of Punjab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRC Electronics and Punjab National.
Diversification Opportunities for MIRC Electronics and Punjab National
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIRC and Punjab is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MIRC Electronics 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 MIRC Electronics 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 MIRC Electronics 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 MIRC Electronics i.e., MIRC Electronics and Punjab National go up and down completely randomly.
Pair Corralation between MIRC Electronics and Punjab National
Assuming the 90 days trading horizon MIRC Electronics Limited is expected to generate 1.94 times more return on investment than Punjab National. However, MIRC Electronics is 1.94 times more volatile than Punjab National Bank. It trades about 0.0 of its potential returns per unit of risk. Punjab National Bank is currently generating about -0.17 per unit of risk. If you would invest 2,377 in MIRC Electronics Limited on October 10, 2024 and sell it today you would lose (17.00) from holding MIRC Electronics Limited or give up 0.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
MIRC Electronics Limited vs. Punjab National Bank
Performance |
Timeline |
MIRC Electronics |
Punjab National Bank |
MIRC Electronics and Punjab National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MIRC Electronics and Punjab National
The main advantage of trading using opposite MIRC Electronics and Punjab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRC Electronics 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.MIRC Electronics vs. Reliance Industries Limited | MIRC Electronics vs. State Bank of | MIRC Electronics vs. HDFC Bank Limited | MIRC Electronics vs. Oil Natural Gas |
Punjab National vs. EMBASSY OFFICE PARKS | Punjab National vs. Fortis Healthcare Limited | Punjab National vs. Sakar Healthcare Limited | Punjab National vs. VIP Clothing Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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