Correlation Between Aisha Steel and Mughal Iron
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By analyzing existing cross correlation between Aisha Steel Mills and Mughal Iron Steel, you can compare the effects of market volatilities on Aisha Steel and Mughal Iron 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 Mughal Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aisha Steel and Mughal Iron.
Diversification Opportunities for Aisha Steel and Mughal Iron
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aisha and Mughal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aisha Steel Mills and Mughal Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mughal Iron Steel 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 Mughal Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mughal Iron Steel has no effect on the direction of Aisha Steel i.e., Aisha Steel and Mughal Iron go up and down completely randomly.
Pair Corralation between Aisha Steel and Mughal Iron
Assuming the 90 days trading horizon Aisha Steel Mills is expected to generate 1.21 times more return on investment than Mughal Iron. However, Aisha Steel is 1.21 times more volatile than Mughal Iron Steel. It trades about 0.22 of its potential returns per unit of risk. Mughal Iron Steel is currently generating about -0.16 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 Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aisha Steel Mills vs. Mughal Iron Steel
Performance |
| Timeline |
| Aisha Steel Mills |
| Mughal Iron Steel |
Aisha Steel and Mughal Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aisha Steel and Mughal Iron
The main advantage of trading using opposite Aisha Steel and Mughal Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aisha Steel position performs unexpectedly, Mughal Iron 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 Mughal Iron will offset losses from the drop in Mughal Iron's long position.| Aisha Steel vs. TPL Insurance | Aisha Steel vs. Silkbank | Aisha Steel vs. Adamjee Insurance | Aisha Steel vs. Agritech |
| Mughal Iron vs. Dost Steels | Mughal Iron vs. WorldCall Telecom | Mughal Iron vs. Reliance Insurance Co | Mughal Iron vs. Aisha Steel Mills |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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