Correlation Between Askari General and Leather Up
Can any of the company-specific risk be diversified away by investing in both Askari General and Leather Up 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 Askari General and Leather Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Askari General Insurance and Leather Up, you can compare the effects of market volatilities on Askari General and Leather Up 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 Askari General with a short position of Leather Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Askari General and Leather Up.
Diversification Opportunities for Askari General and Leather Up
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Askari and Leather is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Askari General Insurance and Leather Up in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leather Up and Askari General 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 Askari General Insurance are associated (or correlated) with Leather Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leather Up has no effect on the direction of Askari General i.e., Askari General and Leather Up go up and down completely randomly.
Pair Corralation between Askari General and Leather Up
If you would invest 2,950 in Askari General Insurance on January 19, 2025 and sell it today you would earn a total of 464.00 from holding Askari General Insurance or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Askari General Insurance vs. Leather Up
Performance |
| Timeline |
| Askari General Insurance |
| Leather Up |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Askari General and Leather Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Askari General and Leather Up
The main advantage of trading using opposite Askari General and Leather Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Askari General position performs unexpectedly, Leather Up 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 Leather Up will offset losses from the drop in Leather Up's long position.| Askari General vs. Masood Textile Mills | Askari General vs. Fauji Foods | Askari General vs. KSB Pumps | Askari General vs. Mari Petroleum |
| Leather Up vs. Meezan Bank | Leather Up vs. 786 Investment Limited | Leather Up vs. First Fidelity Leasing | Leather Up vs. Escorts Investment Bank |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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