Correlation Between Habib Insurance and Lucky Core
Can any of the company-specific risk be diversified away by investing in both Habib Insurance and Lucky Core 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 Habib Insurance and Lucky Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Habib Insurance and Lucky Core Ind, you can compare the effects of market volatilities on Habib Insurance and Lucky Core 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 Habib Insurance with a short position of Lucky Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Habib Insurance and Lucky Core.
Diversification Opportunities for Habib Insurance and Lucky Core
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Habib and Lucky is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Habib Insurance and Lucky Core Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucky Core Ind and Habib Insurance 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 Habib Insurance are associated (or correlated) with Lucky Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucky Core Ind has no effect on the direction of Habib Insurance i.e., Habib Insurance and Lucky Core go up and down completely randomly.
Pair Corralation between Habib Insurance and Lucky Core
Assuming the 90 days trading horizon Habib Insurance is expected to generate 2.03 times more return on investment than Lucky Core. However, Habib Insurance is 2.03 times more volatile than Lucky Core Ind. It trades about 0.07 of its potential returns per unit of risk. Lucky Core Ind is currently generating about 0.12 per unit of risk. If you would invest 494.00 in Habib Insurance on August 27, 2024 and sell it today you would earn a total of 206.00 from holding Habib Insurance or generate 41.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.08% |
| Values | Daily Returns |
Habib Insurance vs. Lucky Core Ind
Performance |
| Timeline |
| Habib Insurance |
| Lucky Core Ind |
Habib Insurance and Lucky Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Habib Insurance and Lucky Core
The main advantage of trading using opposite Habib Insurance and Lucky Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Habib Insurance position performs unexpectedly, Lucky Core 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 Lucky Core will offset losses from the drop in Lucky Core's long position.| Habib Insurance vs. Habib Bank | Habib Insurance vs. National Bank of | Habib Insurance vs. United Bank | Habib Insurance vs. MCB Bank |
| Lucky Core vs. Habib Insurance | Lucky Core vs. Ghandhara Automobile | Lucky Core vs. Century Insurance | Lucky Core vs. Reliance Weaving Mills |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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