Correlation Between Punjab Sind and Bharatiya Global

Can any of the company-specific risk be diversified away by investing in both Punjab Sind and Bharatiya Global 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 Punjab Sind and Bharatiya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Punjab Sind Bank and Bharatiya Global Infomedia, you can compare the effects of market volatilities on Punjab Sind and Bharatiya Global 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 Punjab Sind with a short position of Bharatiya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Punjab Sind and Bharatiya Global.

Diversification Opportunities for Punjab Sind and Bharatiya Global

0.0

Correlation Coefficient

Punjab Sind  Bharatiya Global

Pay attention - limited upside

The 3 months correlation between Punjab and Bharatiya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Punjab Sind Bank and Bharatiya Global Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bharatiya Global Inf and Punjab Sind 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 Punjab Sind Bank are associated (or correlated) with Bharatiya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bharatiya Global Inf has no effect on the direction of Punjab Sind i.e., Punjab Sind and Bharatiya Global go up and down completely randomly.

Pair Corralation between Punjab Sind and Bharatiya Global

Assuming the 90 days trading horizon Punjab Sind Bank is expected to under-perform the Bharatiya Global. In addition to that, Punjab Sind is 1.28 times more volatile than Bharatiya Global Infomedia. It trades about -0.18 of its total potential returns per unit of risk. Bharatiya Global Infomedia is currently generating about -0.04 per unit of volatility. If you would invest  389.00  in Bharatiya Global Infomedia on December 4, 2024 and sell it today you would lose (29.00) from holding Bharatiya Global Infomedia or give up 7.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Punjab Sind Bank  vs.  Bharatiya Global Infomedia

Punjab Sind Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Punjab Sind Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bharatiya Global Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bharatiya Global Infomedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Punjab Sind and Bharatiya Global

The main advantage of trading using opposite Punjab Sind and Bharatiya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Punjab Sind position performs unexpectedly, Bharatiya Global 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 Bharatiya Global will offset losses from the drop in Bharatiya Global's long position.

The idea behind Punjab Sind Bank and Bharatiya Global Infomedia 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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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..