Correlation Between Air Link and Bank Alfalah
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By analyzing existing cross correlation between Air Link Communication and Bank Alfalah, you can compare the effects of market volatilities on Air Link and Bank Alfalah 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 Bank Alfalah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and Bank Alfalah.
Diversification Opportunities for Air Link and Bank Alfalah
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Bank is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and Bank Alfalah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Alfalah 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 Bank Alfalah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Alfalah has no effect on the direction of Air Link i.e., Air Link and Bank Alfalah go up and down completely randomly.
Pair Corralation between Air Link and Bank Alfalah
Assuming the 90 days trading horizon Air Link Communication is expected to generate 1.67 times more return on investment than Bank Alfalah. However, Air Link is 1.67 times more volatile than Bank Alfalah. It trades about 0.2 of its potential returns per unit of risk. Bank Alfalah is currently generating about 0.17 per unit of risk. If you would invest 2,404 in Air Link Communication on September 4, 2024 and sell it today you would earn a total of 11,843 from holding Air Link Communication or generate 492.64% 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. Bank Alfalah
Performance |
| Timeline |
| Air Link Communication |
| Bank Alfalah |
Air Link and Bank Alfalah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and Bank Alfalah
The main advantage of trading using opposite Air Link and Bank Alfalah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, Bank Alfalah 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 Bank Alfalah will offset losses from the drop in Bank Alfalah's long position.| Air Link vs. Habib Insurance | Air Link vs. Pakistan Refinery | Air Link vs. Century Insurance | Air Link vs. Reliance Weaving Mills |
| Bank Alfalah vs. Masood Textile Mills | Bank Alfalah vs. Fauji Foods | Bank Alfalah vs. KSB Pumps | Bank Alfalah vs. Mari Petroleum |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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