Correlation Between ITTEFAQ Iron and Big Bird
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By analyzing existing cross correlation between ITTEFAQ Iron Industries and Big Bird Foods, you can compare the effects of market volatilities on ITTEFAQ Iron and Big Bird 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 ITTEFAQ Iron with a short position of Big Bird. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITTEFAQ Iron and Big Bird.
Diversification Opportunities for ITTEFAQ Iron and Big Bird
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ITTEFAQ and Big is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ITTEFAQ Iron Industries and Big Bird Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Bird Foods and ITTEFAQ Iron 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 ITTEFAQ Iron Industries are associated (or correlated) with Big Bird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Bird Foods has no effect on the direction of ITTEFAQ Iron i.e., ITTEFAQ Iron and Big Bird go up and down completely randomly.
Pair Corralation between ITTEFAQ Iron and Big Bird
Assuming the 90 days trading horizon ITTEFAQ Iron Industries is expected to generate 0.69 times more return on investment than Big Bird. However, ITTEFAQ Iron Industries is 1.46 times less risky than Big Bird. It trades about 0.36 of its potential returns per unit of risk. Big Bird Foods is currently generating about -0.26 per unit of risk. If you would invest 547.00 in ITTEFAQ Iron Industries on September 2, 2024 and sell it today you would earn a total of 109.00 from holding ITTEFAQ Iron Industries or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITTEFAQ Iron Industries vs. Big Bird Foods
Performance |
| Timeline |
| ITTEFAQ Iron Industries |
| Big Bird Foods |
ITTEFAQ Iron and Big Bird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITTEFAQ Iron and Big Bird
The main advantage of trading using opposite ITTEFAQ Iron and Big Bird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITTEFAQ Iron position performs unexpectedly, Big Bird 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 Big Bird will offset losses from the drop in Big Bird's long position.| ITTEFAQ Iron vs. Masood Textile Mills | ITTEFAQ Iron vs. Fauji Foods | ITTEFAQ Iron vs. KSB Pumps | ITTEFAQ Iron vs. Mari Petroleum |
| Big Bird vs. Security Investment Bank | Big Bird vs. Meezan Bank | Big Bird vs. ITTEFAQ Iron Industries | Big Bird vs. Reliance Insurance Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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