Correlation Between EFU General and Mari Petroleum
Can any of the company-specific risk be diversified away by investing in both EFU General and Mari Petroleum 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 EFU General and Mari Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EFU General Insurance and Mari Petroleum, you can compare the effects of market volatilities on EFU General and Mari Petroleum 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 EFU General with a short position of Mari Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of EFU General and Mari Petroleum.
Diversification Opportunities for EFU General and Mari Petroleum
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EFU and Mari is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding EFU General Insurance and Mari Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mari Petroleum and EFU General 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 EFU General Insurance are associated (or correlated) with Mari Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mari Petroleum has no effect on the direction of EFU General i.e., EFU General and Mari Petroleum go up and down completely randomly.
Pair Corralation between EFU General and Mari Petroleum
Assuming the 90 days trading horizon EFU General Insurance is expected to generate 0.77 times more return on investment than Mari Petroleum. However, EFU General Insurance is 1.29 times less risky than Mari Petroleum. It trades about 0.03 of its potential returns per unit of risk. Mari Petroleum is currently generating about -0.16 per unit of risk. If you would invest 11,808 in EFU General Insurance on November 7, 2024 and sell it today you would earn a total of 89.00 from holding EFU General Insurance or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EFU General Insurance vs. Mari Petroleum
Performance |
| Timeline |
| EFU General Insurance |
| Mari Petroleum |
EFU General and Mari Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EFU General and Mari Petroleum
The main advantage of trading using opposite EFU General and Mari Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EFU General position performs unexpectedly, Mari Petroleum 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 Mari Petroleum will offset losses from the drop in Mari Petroleum's long position.| EFU General vs. United Insurance | EFU General vs. Air Link Communication | EFU General vs. IGI Life Insurance | EFU General vs. Habib Insurance |
| Mari Petroleum vs. MCB Bank | Mari Petroleum vs. JS Investments | Mari Petroleum vs. Askari Bank | Mari Petroleum vs. MCB Investment Manag |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |