Correlation Between Air Link and Nishat Mills
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By analyzing existing cross correlation between Air Link Communication and Nishat Mills, you can compare the effects of market volatilities on Air Link and Nishat Mills 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 Nishat Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and Nishat Mills.
Diversification Opportunities for Air Link and Nishat Mills
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Air and Nishat is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and Nishat Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nishat Mills 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 Nishat Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nishat Mills has no effect on the direction of Air Link i.e., Air Link and Nishat Mills go up and down completely randomly.
Pair Corralation between Air Link and Nishat Mills
Assuming the 90 days trading horizon Air Link Communication is expected to generate 1.68 times more return on investment than Nishat Mills. However, Air Link is 1.68 times more volatile than Nishat Mills. It trades about 0.13 of its potential returns per unit of risk. Nishat Mills is currently generating about 0.06 per unit of risk. If you would invest 2,365 in Air Link Communication on September 2, 2024 and sell it today you would earn a total of 11,269 from holding Air Link Communication or generate 476.49% 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. Nishat Mills
Performance |
| Timeline |
| Air Link Communication |
| Nishat Mills |
Air Link and Nishat Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and Nishat Mills
The main advantage of trading using opposite Air Link and Nishat Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link position performs unexpectedly, Nishat Mills 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 Nishat Mills will offset losses from the drop in Nishat Mills' long position.| Air Link vs. Habib Insurance | Air Link vs. Century Insurance | Air Link vs. Reliance Weaving Mills | Air Link vs. Media Times |
| Nishat Mills vs. Masood Textile Mills | Nishat Mills vs. Fauji Foods | Nishat Mills vs. KSB Pumps | Nishat Mills 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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