Correlation Between East West and Air Link
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By analyzing existing cross correlation between East West Insurance and Air Link Communication, you can compare the effects of market volatilities on East West and Air Link 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 East West with a short position of Air Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of East West and Air Link.
Diversification Opportunities for East West and Air Link
Modest diversification
The 3 months correlation between East and Air is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding East West Insurance and Air Link Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Link Communication and East West 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 East West Insurance are associated (or correlated) with Air Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Link Communication has no effect on the direction of East West i.e., East West and Air Link go up and down completely randomly.
Pair Corralation between East West and Air Link
If you would invest 5,729 in East West Insurance on November 7, 2024 and sell it today you would earn a total of 0.00 from holding East West Insurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
East West Insurance vs. Air Link Communication
Performance |
| Timeline |
| East West Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Air Link Communication |
East West and Air Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East West and Air Link
The main advantage of trading using opposite East West and Air Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East West position performs unexpectedly, Air Link 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 Air Link will offset losses from the drop in Air Link's long position.| East West vs. Pakistan Aluminium Beverage | East West vs. WorldCall Telecom | East West vs. Invest Capital Investment | East West vs. Murree Brewery |
| Air Link vs. Habib Insurance | Air Link vs. Ghandhara Automobile | Air Link vs. Shadab Textile Mills | Air Link vs. Century Insurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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