Correlation Between Air Link and Askari Bank
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By analyzing existing cross correlation between Air Link Communication and Askari Bank, you can compare the effects of market volatilities on Air Link and Askari Bank 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 Askari Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and Askari Bank.
Diversification Opportunities for Air Link and Askari Bank
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Askari is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and Askari Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Askari Bank 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 Askari Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Askari Bank has no effect on the direction of Air Link i.e., Air Link and Askari Bank go up and down completely randomly.
Pair Corralation between Air Link and Askari Bank
Assuming the 90 days trading horizon Air Link Communication is expected to generate 1.52 times more return on investment than Askari Bank. However, Air Link is 1.52 times more volatile than Askari Bank. It trades about 0.17 of its potential returns per unit of risk. Askari Bank is currently generating about 0.1 per unit of risk. If you would invest 1,657 in Air Link Communication on August 24, 2024 and sell it today you would earn a total of 11,249 from holding Air Link Communication or generate 678.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Link Communication vs. Askari Bank
Performance |
| Timeline |
| Air Link Communication |
| Askari Bank |
Air Link and Askari Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and Askari Bank
The main advantage of trading using opposite Air Link and Askari Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, Askari Bank 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 Askari Bank will offset losses from the drop in Askari Bank's long position.| Air Link vs. Habib Insurance | Air Link vs. Ghandhara Automobile | Air Link vs. Century Insurance | Air Link vs. Reliance Weaving Mills |
| Askari Bank vs. Habib Bank | Askari Bank vs. National Bank of | Askari Bank vs. MCB Bank | Askari Bank vs. Allied 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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