Correlation Between Supernet and Engro Polymer
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By analyzing existing cross correlation between Supernet and Engro Polymer Chemicals, you can compare the effects of market volatilities on Supernet and Engro Polymer 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 Supernet with a short position of Engro Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supernet and Engro Polymer.
Diversification Opportunities for Supernet and Engro Polymer
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Supernet and Engro is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Supernet and Engro Polymer Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engro Polymer Chemicals and Supernet 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 Supernet are associated (or correlated) with Engro Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engro Polymer Chemicals has no effect on the direction of Supernet i.e., Supernet and Engro Polymer go up and down completely randomly.
Pair Corralation between Supernet and Engro Polymer
Assuming the 90 days trading horizon Supernet is expected to generate 2.33 times more return on investment than Engro Polymer. However, Supernet is 2.33 times more volatile than Engro Polymer Chemicals. It trades about 0.16 of its potential returns per unit of risk. Engro Polymer Chemicals is currently generating about 0.1 per unit of risk. If you would invest 1,100 in Supernet on September 12, 2024 and sell it today you would earn a total of 455.00 from holding Supernet or generate 41.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.88% |
| Values | Daily Returns |
Supernet vs. Engro Polymer Chemicals
Performance |
| Timeline |
| Supernet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Engro Polymer Chemicals |
Supernet and Engro Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supernet and Engro Polymer
The main advantage of trading using opposite Supernet and Engro Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supernet position performs unexpectedly, Engro Polymer 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 Engro Polymer will offset losses from the drop in Engro Polymer's long position.| Supernet vs. National Foods | Supernet vs. Pakistan Aluminium Beverage | Supernet vs. Security Investment Bank | Supernet vs. JS Investments |
| Engro Polymer vs. Pakistan Tobacco | Engro Polymer vs. United Insurance | Engro Polymer vs. Big Bird Foods | Engro Polymer vs. Shaheen 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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