Correlation Between Fateh Sports and East West
Can any of the company-specific risk be diversified away by investing in both Fateh Sports and East West 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 East West 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 East West Insurance, you can compare the effects of market volatilities on Fateh Sports and East West 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 East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fateh Sports and East West.
Diversification Opportunities for Fateh Sports and East West
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fateh and East is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fateh Sports Wear and East West Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West 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 East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Insurance has no effect on the direction of Fateh Sports i.e., Fateh Sports and East West go up and down completely randomly.
Pair Corralation between Fateh Sports and East West
Assuming the 90 days trading horizon Fateh Sports Wear is expected to generate 1.45 times more return on investment than East West. However, Fateh Sports is 1.45 times more volatile than East West Insurance. It trades about 0.07 of its potential returns per unit of risk. East West Insurance is currently generating about 0.08 per unit of risk. If you would invest 6,248 in Fateh Sports Wear on December 12, 2024 and sell it today you would earn a total of 1,545 from holding Fateh Sports Wear or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.7% |
| Values | Daily Returns |
Fateh Sports Wear vs. East West Insurance
Performance |
| Timeline |
| Fateh Sports Wear |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| East West Insurance |
Risk-Adjusted Performance
Excellent
Weak | Strong |
Fateh Sports and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fateh Sports and East West
The main advantage of trading using opposite Fateh Sports and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fateh Sports position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Fateh Sports vs. Premier Insurance | ||
| Fateh Sports vs. IGI Life Insurance | ||
| Fateh Sports vs. Silkbank | ||
| Fateh Sports vs. EFU General Insurance |
| East West vs. Pakistan Synthetics | ||
| East West vs. Engro Polymer Chemicals | ||
| East West vs. Pakistan Tobacco | ||
| East West vs. United 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |