Correlation Between ITTEFAQ Iron and First Al
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By analyzing existing cross correlation between ITTEFAQ Iron Industries and First Al Noor Modaraba, you can compare the effects of market volatilities on ITTEFAQ Iron and First Al 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 First Al. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITTEFAQ Iron and First Al.
Diversification Opportunities for ITTEFAQ Iron and First Al
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ITTEFAQ and First is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ITTEFAQ Iron Industries and First Al Noor Modaraba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Al Noor 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 First Al. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Al Noor has no effect on the direction of ITTEFAQ Iron i.e., ITTEFAQ Iron and First Al go up and down completely randomly.
Pair Corralation between ITTEFAQ Iron and First Al
Assuming the 90 days trading horizon ITTEFAQ Iron Industries is expected to generate 0.67 times more return on investment than First Al. However, ITTEFAQ Iron Industries is 1.5 times less risky than First Al. It trades about 0.35 of its potential returns per unit of risk. First Al Noor Modaraba is currently generating about 0.0 per unit of risk. If you would invest 603.00 in ITTEFAQ Iron Industries on September 13, 2024 and sell it today you would earn a total of 114.00 from holding ITTEFAQ Iron Industries or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
ITTEFAQ Iron Industries vs. First Al Noor Modaraba
Performance |
| Timeline |
| ITTEFAQ Iron Industries |
| First Al Noor |
ITTEFAQ Iron and First Al Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITTEFAQ Iron and First Al
The main advantage of trading using opposite ITTEFAQ Iron and First Al positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITTEFAQ Iron position performs unexpectedly, First Al 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 First Al will offset losses from the drop in First Al's long position.| ITTEFAQ Iron vs. Masood Textile Mills | ITTEFAQ Iron vs. Fauji Foods | ITTEFAQ Iron vs. KSB Pumps | ITTEFAQ Iron vs. Mari Petroleum |
| First Al vs. National Foods | First Al vs. AKD Hospitality | First Al vs. Habib Insurance | First Al vs. Unilever Pakistan Foods |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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