Correlation Between PSG FINANCIAL and NATIONAL INVESTMENT

Can any of the company-specific risk be diversified away by investing in both PSG FINANCIAL and NATIONAL INVESTMENT 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 PSG FINANCIAL and NATIONAL INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PSG FINANCIAL SERVICES and NATIONAL INVESTMENT TRUST, you can compare the effects of market volatilities on PSG FINANCIAL and NATIONAL INVESTMENT 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 PSG FINANCIAL with a short position of NATIONAL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSG FINANCIAL and NATIONAL INVESTMENT.

Diversification Opportunities for PSG FINANCIAL and NATIONAL INVESTMENT

0.0

Correlation Coefficient

PSG FINANCIAL  NATIONAL INVESTMENT

Pay attention - limited upside

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

Pair Corralation between PSG FINANCIAL and NATIONAL INVESTMENT

If you would invest  80.00  in PSG FINANCIAL SERVICES on December 30, 2024 and sell it today you would earn a total of  0.00  from holding PSG FINANCIAL SERVICES or generate 0.0% return on investment over 90 days.

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

PSG FINANCIAL SERVICES  vs.  NATIONAL INVESTMENT TRUST

PSG FINANCIAL SERVICES

Risk-Adjusted Performance

Very Weak

Over the last 90 days PSG FINANCIAL SERVICES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, PSG FINANCIAL is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

NATIONAL INVESTMENT TRUST

Risk-Adjusted Performance

Very Weak

Over the last 90 days NATIONAL INVESTMENT TRUST has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, NATIONAL INVESTMENT is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PSG FINANCIAL and NATIONAL INVESTMENT

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

The idea behind PSG FINANCIAL SERVICES and NATIONAL INVESTMENT TRUST 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.