Correlation Between Fateh Sports and Lotte Chemical
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By analyzing existing cross correlation between Fateh Sports Wear and Lotte Chemical Pakistan, you can compare the effects of market volatilities on Fateh Sports and Lotte Chemical 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 Lotte Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fateh Sports and Lotte Chemical.
Diversification Opportunities for Fateh Sports and Lotte Chemical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fateh and Lotte is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fateh Sports Wear and Lotte Chemical Pakistan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Chemical Pakistan 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 Lotte Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Chemical Pakistan has no effect on the direction of Fateh Sports i.e., Fateh Sports and Lotte Chemical go up and down completely randomly.
Pair Corralation between Fateh Sports and Lotte Chemical
Assuming the 90 days trading horizon Fateh Sports Wear is expected to under-perform the Lotte Chemical. In addition to that, Fateh Sports is 1.59 times more volatile than Lotte Chemical Pakistan. It trades about -0.04 of its total potential returns per unit of risk. Lotte Chemical Pakistan is currently generating about 0.11 per unit of volatility. If you would invest 1,650 in Lotte Chemical Pakistan on November 2, 2024 and sell it today you would earn a total of 524.00 from holding Lotte Chemical Pakistan or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.9% |
| Values | Daily Returns |
Fateh Sports Wear vs. Lotte Chemical Pakistan
Performance |
| Timeline |
| Fateh Sports Wear |
| Lotte Chemical Pakistan |
Fateh Sports and Lotte Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fateh Sports and Lotte Chemical
The main advantage of trading using opposite Fateh Sports and Lotte Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fateh Sports position performs unexpectedly, Lotte Chemical 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 Lotte Chemical will offset losses from the drop in Lotte Chemical's long position.| Fateh Sports vs. Data Agro | Fateh Sports vs. Invest Capital Investment | Fateh Sports vs. JS Bank | Fateh Sports vs. Jubilee Life Insurance |
| Lotte Chemical vs. Air Link Communication | Lotte Chemical vs. Apna Microfinance Bank | Lotte Chemical vs. Shaheen Insurance | Lotte Chemical vs. Pak Datacom |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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