Correlation Between Askari Bank and Quice Food
Can any of the company-specific risk be diversified away by investing in both Askari Bank and Quice Food at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Askari Bank and Quice Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Askari Bank and Quice Food Industries, you can compare the effects of market volatilities on Askari Bank and Quice Food 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 Askari Bank with a short position of Quice Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Askari Bank and Quice Food.
Diversification Opportunities for Askari Bank and Quice Food
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Askari and Quice is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Askari Bank and Quice Food Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quice Food Industries and Askari Bank 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 Askari Bank are associated (or correlated) with Quice Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quice Food Industries has no effect on the direction of Askari Bank i.e., Askari Bank and Quice Food go up and down completely randomly.
Pair Corralation between Askari Bank and Quice Food
Assuming the 90 days trading horizon Askari Bank is expected to generate 0.86 times more return on investment than Quice Food. However, Askari Bank is 1.16 times less risky than Quice Food. It trades about 0.15 of its potential returns per unit of risk. Quice Food Industries is currently generating about 0.06 per unit of risk. If you would invest 2,934 in Askari Bank on October 22, 2024 and sell it today you would earn a total of 1,023 from holding Askari Bank or generate 34.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Askari Bank vs. Quice Food Industries
Performance |
| Timeline |
| Askari Bank |
| Quice Food Industries |
Askari Bank and Quice Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Askari Bank and Quice Food
The main advantage of trading using opposite Askari Bank and Quice Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Askari Bank position performs unexpectedly, Quice Food 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 Quice Food will offset losses from the drop in Quice Food's long position.| Askari Bank vs. Quice Food Industries | Askari Bank vs. Shaheen Insurance | Askari Bank vs. Big Bird Foods | Askari Bank vs. Packages |
| Quice Food vs. EFU General Insurance | Quice Food vs. Pakistan Synthetics | Quice Food vs. Pak Datacom | Quice Food vs. Wah Nobel Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |