Correlation Between EFU General and Thatta Cement
Can any of the company-specific risk be diversified away by investing in both EFU General and Thatta Cement 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 Thatta Cement 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 Thatta Cement, you can compare the effects of market volatilities on EFU General and Thatta Cement 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 Thatta Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of EFU General and Thatta Cement.
Diversification Opportunities for EFU General and Thatta Cement
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EFU and Thatta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EFU General Insurance and Thatta Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thatta Cement 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 Thatta Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thatta Cement has no effect on the direction of EFU General i.e., EFU General and Thatta Cement go up and down completely randomly.
Pair Corralation between EFU General and Thatta Cement
If you would invest 7,494 in EFU General Insurance on November 8, 2024 and sell it today you would earn a total of 4,118 from holding EFU General Insurance or generate 54.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EFU General Insurance vs. Thatta Cement
Performance |
| Timeline |
| EFU General Insurance |
| Thatta Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
EFU General and Thatta Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EFU General and Thatta Cement
The main advantage of trading using opposite EFU General and Thatta Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EFU General position performs unexpectedly, Thatta Cement 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 Thatta Cement will offset losses from the drop in Thatta Cement's long position.| EFU General vs. Dost Steels | EFU General vs. JS Investments | EFU General vs. Packages | EFU General vs. Hi Tech Lubricants |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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