Correlation Between Air Link and East West
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By analyzing existing cross correlation between Air Link Communication and East West Insurance, you can compare the effects of market volatilities on Air Link and East West 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 East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and East West.
Diversification Opportunities for Air Link and East West
Modest diversification
The 3 months correlation between Air and East is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and East West Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Insurance 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 East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Insurance has no effect on the direction of Air Link i.e., Air Link and East West go up and down completely randomly.
Pair Corralation between Air Link and East West
If you would invest 5,729 in East West Insurance on November 7, 2024 and sell it today you would earn a total of 0.00 from holding East West Insurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
Air Link Communication vs. East West Insurance
Performance |
| Timeline |
| Air Link Communication |
| East West Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Air Link and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and East West
The main advantage of trading using opposite Air Link and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Air Link vs. Habib Insurance | Air Link vs. Ghandhara Automobile | Air Link vs. Shadab Textile Mills | Air Link vs. Century Insurance |
| East West vs. Pakistan Aluminium Beverage | East West vs. WorldCall Telecom | East West vs. Invest Capital Investment | East West vs. Murree Brewery |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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