Correlation Between Atlas Insurance and Mughal Iron
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By analyzing existing cross correlation between Atlas Insurance and Mughal Iron Steel, you can compare the effects of market volatilities on Atlas Insurance 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 Atlas Insurance with a short position of Mughal Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Insurance and Mughal Iron.
Diversification Opportunities for Atlas Insurance and Mughal Iron
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlas and Mughal is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Insurance 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 Atlas Insurance 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 Atlas Insurance 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 Atlas Insurance i.e., Atlas Insurance and Mughal Iron go up and down completely randomly.
Pair Corralation between Atlas Insurance and Mughal Iron
Assuming the 90 days trading horizon Atlas Insurance is expected to generate 0.77 times more return on investment than Mughal Iron. However, Atlas Insurance is 1.3 times less risky than Mughal Iron. It trades about 0.43 of its potential returns per unit of risk. Mughal Iron Steel is currently generating about -0.21 per unit of risk. If you would invest 4,480 in Atlas Insurance on August 24, 2024 and sell it today you would earn a total of 991.00 from holding Atlas Insurance or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Insurance vs. Mughal Iron Steel
Performance |
| Timeline |
| Atlas Insurance |
| Mughal Iron Steel |
Atlas Insurance and Mughal Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Insurance and Mughal Iron
The main advantage of trading using opposite Atlas Insurance and Mughal Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Insurance 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.| Atlas Insurance vs. Oil and Gas | Atlas Insurance vs. Lotte Chemical Pakistan | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Unity Foods |
| Mughal Iron vs. 786 Investment Limited | Mughal Iron vs. Crescent Star Insurance | Mughal Iron vs. Security Investment Bank | Mughal Iron vs. Escorts Investment Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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