Correlation Between Fateh Sports and Mari Petroleum
Can any of the company-specific risk be diversified away by investing in both Fateh Sports and Mari Petroleum 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 Mari Petroleum 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 Mari Petroleum, you can compare the effects of market volatilities on Fateh Sports and Mari Petroleum 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 Mari Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fateh Sports and Mari Petroleum.
Diversification Opportunities for Fateh Sports and Mari Petroleum
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fateh and Mari is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fateh Sports Wear and Mari Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mari Petroleum 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 Mari Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mari Petroleum has no effect on the direction of Fateh Sports i.e., Fateh Sports and Mari Petroleum go up and down completely randomly.
Pair Corralation between Fateh Sports and Mari Petroleum
Assuming the 90 days trading horizon Fateh Sports Wear is expected to under-perform the Mari Petroleum. But the stock apears to be less risky and, when comparing its historical volatility, Fateh Sports Wear is 1.09 times less risky than Mari Petroleum. The stock trades about -0.27 of its potential returns per unit of risk. The Mari Petroleum is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 67,306 in Mari Petroleum on October 26, 2024 and sell it today you would lose (7,781) from holding Mari Petroleum or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Fateh Sports Wear vs. Mari Petroleum
Performance |
| Timeline |
| Fateh Sports Wear |
| Mari Petroleum |
Fateh Sports and Mari Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fateh Sports and Mari Petroleum
The main advantage of trading using opposite Fateh Sports and Mari Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fateh Sports position performs unexpectedly, Mari Petroleum 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 Mari Petroleum will offset losses from the drop in Mari Petroleum's long position.| Fateh Sports vs. Askari Bank | Fateh Sports vs. Air Link Communication | Fateh Sports vs. Habib Insurance | Fateh Sports vs. Invest Capital Investment |
| Mari Petroleum vs. Air Link Communication | Mari Petroleum vs. Fateh Sports Wear | Mari Petroleum vs. Packages | Mari Petroleum vs. Oil and Gas |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |