Correlation Between Agha Steel and Atlas Battery
Can any of the company-specific risk be diversified away by investing in both Agha Steel and Atlas Battery 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 Agha Steel and Atlas Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agha Steel Industries and Atlas Battery, you can compare the effects of market volatilities on Agha Steel and Atlas Battery 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 Agha Steel with a short position of Atlas Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agha Steel and Atlas Battery.
Diversification Opportunities for Agha Steel and Atlas Battery
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agha and Atlas is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Agha Steel Industries and Atlas Battery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Battery and Agha Steel 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 Agha Steel Industries are associated (or correlated) with Atlas Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Battery has no effect on the direction of Agha Steel i.e., Agha Steel and Atlas Battery go up and down completely randomly.
Pair Corralation between Agha Steel and Atlas Battery
Assuming the 90 days trading horizon Agha Steel Industries is expected to under-perform the Atlas Battery. In addition to that, Agha Steel is 1.02 times more volatile than Atlas Battery. It trades about -0.02 of its total potential returns per unit of risk. Atlas Battery is currently generating about 0.09 per unit of volatility. If you would invest 23,110 in Atlas Battery on September 14, 2024 and sell it today you would earn a total of 16,978 from holding Atlas Battery or generate 73.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agha Steel Industries vs. Atlas Battery
Performance |
| Timeline |
| Agha Steel Industries |
| Atlas Battery |
Agha Steel and Atlas Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agha Steel and Atlas Battery
The main advantage of trading using opposite Agha Steel and Atlas Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agha Steel position performs unexpectedly, Atlas Battery 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 Atlas Battery will offset losses from the drop in Atlas Battery's long position.| Agha Steel vs. Habib Insurance | Agha Steel vs. Ghandhara Automobile | Agha Steel vs. Century Insurance | Agha Steel vs. Reliance Weaving Mills |
| Atlas Battery vs. Nimir Industrial Chemical | Atlas Battery vs. International Steels | Atlas Battery vs. Synthetic Products Enterprises | Atlas Battery vs. Agha Steel Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |