Correlation Between Engro Polymer and Gulistan Spinning
Can any of the company-specific risk be diversified away by investing in both Engro Polymer and Gulistan Spinning 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 Engro Polymer and Gulistan Spinning into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Engro Polymer Chemicals and Gulistan Spinning Mills, you can compare the effects of market volatilities on Engro Polymer and Gulistan Spinning 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 Engro Polymer with a short position of Gulistan Spinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engro Polymer and Gulistan Spinning.
Diversification Opportunities for Engro Polymer and Gulistan Spinning
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Engro and Gulistan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Engro Polymer Chemicals and Gulistan Spinning Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulistan Spinning Mills and Engro Polymer 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 Engro Polymer Chemicals are associated (or correlated) with Gulistan Spinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulistan Spinning Mills has no effect on the direction of Engro Polymer i.e., Engro Polymer and Gulistan Spinning go up and down completely randomly.
Pair Corralation between Engro Polymer and Gulistan Spinning
If you would invest 3,215 in Engro Polymer Chemicals on November 2, 2024 and sell it today you would earn a total of 197.00 from holding Engro Polymer Chemicals or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Engro Polymer Chemicals vs. Gulistan Spinning Mills
Performance |
| Timeline |
| Engro Polymer Chemicals |
| Gulistan Spinning Mills |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Engro Polymer and Gulistan Spinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engro Polymer and Gulistan Spinning
The main advantage of trading using opposite Engro Polymer and Gulistan Spinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engro Polymer position performs unexpectedly, Gulistan Spinning 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 Gulistan Spinning will offset losses from the drop in Gulistan Spinning's long position.| Engro Polymer vs. National Foods | Engro Polymer vs. Pakistan Aluminium Beverage | Engro Polymer vs. Unity Foods | Engro Polymer vs. ORIX Leasing Pakistan |
| Gulistan Spinning vs. First Fidelity Leasing | Gulistan Spinning vs. Matco Foods | Gulistan Spinning vs. Hi Tech Lubricants | Gulistan Spinning vs. Grays Leasing |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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