Correlation Between Yes Bank and Punjab National
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By analyzing existing cross correlation between Yes Bank Limited and Punjab National Bank, you can compare the effects of market volatilities on Yes Bank 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 Yes Bank with a short position of Punjab National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Bank and Punjab National.
Diversification Opportunities for Yes Bank and Punjab National
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yes and Punjab is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Yes Bank 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 Yes Bank 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 Yes Bank 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 Yes Bank i.e., Yes Bank and Punjab National go up and down completely randomly.
Pair Corralation between Yes Bank and Punjab National
Assuming the 90 days trading horizon Yes Bank Limited is expected to generate 1.0 times more return on investment than Punjab National. However, Yes Bank is 1.0 times more volatile than Punjab National Bank. It trades about -0.16 of its potential returns per unit of risk. Punjab National Bank is currently generating about -0.2 per unit of risk. If you would invest 1,959 in Yes Bank Limited on December 2, 2024 and sell it today you would lose (284.00) from holding Yes Bank Limited or give up 14.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yes Bank Limited vs. Punjab National Bank
Performance |
Timeline |
Yes Bank Limited |
Punjab National Bank |
Yes Bank and Punjab National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yes Bank and Punjab National
The main advantage of trading using opposite Yes Bank and Punjab National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Bank 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.Yes Bank vs. Sportking India Limited | Yes Bank vs. HDFC Life Insurance | Yes Bank vs. Transport of | Yes Bank vs. Megastar Foods Limited |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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