Correlation Between Aisha Steel and Grays Leasing
Can any of the company-specific risk be diversified away by investing in both Aisha Steel and Grays Leasing 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 Aisha Steel and Grays Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aisha Steel Mills and Grays Leasing, you can compare the effects of market volatilities on Aisha Steel and Grays Leasing 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 Aisha Steel with a short position of Grays Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aisha Steel and Grays Leasing.
Diversification Opportunities for Aisha Steel and Grays Leasing
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aisha and Grays is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aisha Steel Mills and Grays Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grays Leasing and Aisha Steel 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 Aisha Steel Mills are associated (or correlated) with Grays Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grays Leasing has no effect on the direction of Aisha Steel i.e., Aisha Steel and Grays Leasing go up and down completely randomly.
Pair Corralation between Aisha Steel and Grays Leasing
Assuming the 90 days trading horizon Aisha Steel Mills is expected to generate 1.01 times more return on investment than Grays Leasing. However, Aisha Steel is 1.01 times more volatile than Grays Leasing. It trades about 0.22 of its potential returns per unit of risk. Grays Leasing is currently generating about 0.03 per unit of risk. If you would invest 641.00 in Aisha Steel Mills on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Aisha Steel Mills or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Aisha Steel Mills vs. Grays Leasing
Performance |
| Timeline |
| Aisha Steel Mills |
| Grays Leasing |
Aisha Steel and Grays Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aisha Steel and Grays Leasing
The main advantage of trading using opposite Aisha Steel and Grays Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aisha Steel position performs unexpectedly, Grays Leasing 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 Grays Leasing will offset losses from the drop in Grays Leasing's long position.| Aisha Steel vs. TPL Insurance | Aisha Steel vs. Silkbank | Aisha Steel vs. Adamjee Insurance | Aisha Steel vs. Agritech |
| Grays Leasing vs. East West Insurance | Grays Leasing vs. Century Insurance | Grays Leasing vs. Shifa International Hospitals | Grays Leasing vs. Air Link Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |