Correlation Between Crescent Steel and Fateh Sports
Can any of the company-specific risk be diversified away by investing in both Crescent Steel and Fateh Sports 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 Crescent Steel and Fateh Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Steel Allied and Fateh Sports Wear, you can compare the effects of market volatilities on Crescent Steel and Fateh Sports 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 Crescent Steel with a short position of Fateh Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Steel and Fateh Sports.
Diversification Opportunities for Crescent Steel and Fateh Sports
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crescent and Fateh is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Steel Allied and Fateh Sports Wear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fateh Sports Wear and Crescent 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 Crescent Steel Allied are associated (or correlated) with Fateh Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fateh Sports Wear has no effect on the direction of Crescent Steel i.e., Crescent Steel and Fateh Sports go up and down completely randomly.
Pair Corralation between Crescent Steel and Fateh Sports
Assuming the 90 days trading horizon Crescent Steel Allied is expected to under-perform the Fateh Sports. In addition to that, Crescent Steel is 1.03 times more volatile than Fateh Sports Wear. It trades about -0.08 of its total potential returns per unit of risk. Fateh Sports Wear is currently generating about 0.41 per unit of volatility. If you would invest 7,857 in Fateh Sports Wear on November 4, 2024 and sell it today you would earn a total of 1,643 from holding Fateh Sports Wear or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Crescent Steel Allied vs. Fateh Sports Wear
Performance |
| Timeline |
| Crescent Steel Allied |
| Fateh Sports Wear |
Crescent Steel and Fateh Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Steel and Fateh Sports
The main advantage of trading using opposite Crescent Steel and Fateh Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Steel position performs unexpectedly, Fateh Sports 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 Fateh Sports will offset losses from the drop in Fateh Sports' long position.| Crescent Steel vs. Crescent Star Insurance | Crescent Steel vs. Shaheen Insurance | Crescent Steel vs. Unilever Pakistan Foods | Crescent Steel vs. Pakistan Reinsurance |
| Fateh Sports vs. National Bank of | Fateh Sports vs. Metropolitan Steel Corp | Fateh Sports vs. Soneri Bank | Fateh Sports vs. JS 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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