Correlation Between Fateh Sports and Crescent Star
Can any of the company-specific risk be diversified away by investing in both Fateh Sports and Crescent Star 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 Fateh Sports and Crescent Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fateh Sports Wear and Crescent Star Insurance, you can compare the effects of market volatilities on Fateh Sports and Crescent Star 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 Fateh Sports with a short position of Crescent Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fateh Sports and Crescent Star.
Diversification Opportunities for Fateh Sports and Crescent Star
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fateh and Crescent is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fateh Sports Wear and Crescent Star Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Star Insurance and Fateh Sports 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 Fateh Sports Wear are associated (or correlated) with Crescent Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Star Insurance has no effect on the direction of Fateh Sports i.e., Fateh Sports and Crescent Star go up and down completely randomly.
Pair Corralation between Fateh Sports and Crescent Star
Assuming the 90 days trading horizon Fateh Sports Wear is expected to generate 2.49 times more return on investment than Crescent Star. However, Fateh Sports is 2.49 times more volatile than Crescent Star Insurance. It trades about 0.45 of its potential returns per unit of risk. Crescent Star Insurance is currently generating about -0.3 per unit of risk. If you would invest 7,857 in Fateh Sports Wear on November 8, 2024 and sell it today you would earn a total of 1,643 from holding Fateh Sports Wear or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Fateh Sports Wear vs. Crescent Star Insurance
Performance |
| Timeline |
| Fateh Sports Wear |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crescent Star Insurance |
Fateh Sports and Crescent Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fateh Sports and Crescent Star
The main advantage of trading using opposite Fateh Sports and Crescent Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fateh Sports position performs unexpectedly, Crescent Star 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 Crescent Star will offset losses from the drop in Crescent Star's long position.| Fateh Sports vs. Universal Insurance | Fateh Sports vs. National Bank of | Fateh Sports vs. MCB Bank | Fateh Sports vs. MCB Investment Manag |
| Crescent Star vs. Honda Atlas Cars | Crescent Star vs. JS Investments | Crescent Star vs. Crescent Steel Allied | Crescent Star vs. Big Bird Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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