Correlation Between Air Link and Agha Steel
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By analyzing existing cross correlation between Air Link Communication and Agha Steel Industries, you can compare the effects of market volatilities on Air Link and Agha Steel 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 Air Link with a short position of Agha Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and Agha Steel.
Diversification Opportunities for Air Link and Agha Steel
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Agha is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and Agha Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agha Steel Industries and Air Link 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 Air Link Communication are associated (or correlated) with Agha Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agha Steel Industries has no effect on the direction of Air Link i.e., Air Link and Agha Steel go up and down completely randomly.
Pair Corralation between Air Link and Agha Steel
Assuming the 90 days trading horizon Air Link Communication is expected to generate 1.73 times more return on investment than Agha Steel. However, Air Link is 1.73 times more volatile than Agha Steel Industries. It trades about -0.11 of its potential returns per unit of risk. Agha Steel Industries is currently generating about -0.27 per unit of risk. If you would invest 21,097 in Air Link Communication on November 5, 2024 and sell it today you would lose (1,459) from holding Air Link Communication or give up 6.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Link Communication vs. Agha Steel Industries
Performance |
| Timeline |
| Air Link Communication |
| Agha Steel Industries |
Air Link and Agha Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and Agha Steel
The main advantage of trading using opposite Air Link and Agha Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, Agha Steel 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 Agha Steel will offset losses from the drop in Agha Steel's long position.| Air Link vs. Premier Insurance | Air Link vs. Bawany Air Products | Air Link vs. Askari General Insurance | Air Link vs. Roshan Packages |
| Agha Steel vs. Wah Nobel Chemicals | Agha Steel vs. JS Investments | Agha Steel vs. Nimir Industrial Chemical | Agha Steel vs. NetSol Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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