Correlation Between Crescent Star and Lotte Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Crescent Star Insurance and Lotte Chemical Pakistan, you can compare the effects of market volatilities on Crescent Star and Lotte Chemical 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 Star with a short position of Lotte Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Star and Lotte Chemical.
Diversification Opportunities for Crescent Star and Lotte Chemical
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crescent and Lotte is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Star Insurance and Lotte Chemical Pakistan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Chemical Pakistan and Crescent Star 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 Star Insurance are associated (or correlated) with Lotte Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Chemical Pakistan has no effect on the direction of Crescent Star i.e., Crescent Star and Lotte Chemical go up and down completely randomly.
Pair Corralation between Crescent Star and Lotte Chemical
Assuming the 90 days trading horizon Crescent Star Insurance is expected to generate 0.81 times more return on investment than Lotte Chemical. However, Crescent Star Insurance is 1.23 times less risky than Lotte Chemical. It trades about 0.14 of its potential returns per unit of risk. Lotte Chemical Pakistan is currently generating about -0.27 per unit of risk. If you would invest 278.00 in Crescent Star Insurance on November 29, 2024 and sell it today you would earn a total of 13.00 from holding Crescent Star Insurance or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crescent Star Insurance vs. Lotte Chemical Pakistan
Performance |
| Timeline |
| Crescent Star Insurance |
| Lotte Chemical Pakistan |
Crescent Star and Lotte Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crescent Star and Lotte Chemical
The main advantage of trading using opposite Crescent Star and Lotte Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Star position performs unexpectedly, Lotte Chemical 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 Lotte Chemical will offset losses from the drop in Lotte Chemical's long position.| Crescent Star vs. Bawany Air Products | Crescent Star vs. Pakistan Tobacco | Crescent Star vs. Air Link Communication | Crescent Star vs. Mughal Iron Steel |
| Lotte Chemical vs. WorldCall Telecom | Lotte Chemical vs. Air Link Communication | Lotte Chemical vs. Unity Foods | Lotte Chemical vs. Pakistan Telecommunication |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |