Correlation Between Atlas Insurance and Murree Brewery
Can any of the company-specific risk be diversified away by investing in both Atlas Insurance and Murree Brewery 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 Atlas Insurance and Murree Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Insurance and Murree Brewery, you can compare the effects of market volatilities on Atlas Insurance and Murree Brewery 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 Murree Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Insurance and Murree Brewery.
Diversification Opportunities for Atlas Insurance and Murree Brewery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Atlas and Murree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Insurance and Murree Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murree Brewery 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 Murree Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murree Brewery has no effect on the direction of Atlas Insurance i.e., Atlas Insurance and Murree Brewery go up and down completely randomly.
Pair Corralation between Atlas Insurance and Murree Brewery
Assuming the 90 days trading horizon Atlas Insurance is expected to generate 1.07 times more return on investment than Murree Brewery. However, Atlas Insurance is 1.07 times more volatile than Murree Brewery. It trades about 0.45 of its potential returns per unit of risk. Murree Brewery is currently generating about 0.16 per unit of risk. If you would invest 4,557 in Atlas Insurance on August 31, 2024 and sell it today you would earn a total of 943.00 from holding Atlas Insurance or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Insurance vs. Murree Brewery
Performance |
| Timeline |
| Atlas Insurance |
| Murree Brewery |
Atlas Insurance and Murree Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Insurance and Murree Brewery
The main advantage of trading using opposite Atlas Insurance and Murree Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Insurance position performs unexpectedly, Murree Brewery 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 Murree Brewery will offset losses from the drop in Murree Brewery's long position.| Atlas Insurance vs. National Foods | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Aisha Steel Mills | Atlas Insurance vs. Lotte Chemical Pakistan |
| Murree Brewery vs. Allied Bank | Murree Brewery vs. Crescent Star Insurance | Murree Brewery vs. Premier Insurance | Murree Brewery vs. Atlas Insurance |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |