Correlation Between ITTEFAQ Iron and Nishat Mills
Specify exactly 2 symbols:
By analyzing existing cross correlation between ITTEFAQ Iron Industries and Nishat Mills, you can compare the effects of market volatilities on ITTEFAQ Iron and Nishat Mills 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 Nishat Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITTEFAQ Iron and Nishat Mills.
Diversification Opportunities for ITTEFAQ Iron and Nishat Mills
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ITTEFAQ and Nishat is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ITTEFAQ Iron Industries and Nishat Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nishat Mills 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 Nishat Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nishat Mills has no effect on the direction of ITTEFAQ Iron i.e., ITTEFAQ Iron and Nishat Mills go up and down completely randomly.
Pair Corralation between ITTEFAQ Iron and Nishat Mills
Assuming the 90 days trading horizon ITTEFAQ Iron Industries is expected to generate 1.66 times more return on investment than Nishat Mills. However, ITTEFAQ Iron is 1.66 times more volatile than Nishat Mills. It trades about 0.04 of its potential returns per unit of risk. Nishat Mills is currently generating about 0.05 per unit of risk. If you would invest 495.00 in ITTEFAQ Iron Industries on August 31, 2024 and sell it today you would earn a total of 156.00 from holding ITTEFAQ Iron Industries or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
ITTEFAQ Iron Industries vs. Nishat Mills
Performance |
| Timeline |
| ITTEFAQ Iron Industries |
| Nishat Mills |
ITTEFAQ Iron and Nishat Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITTEFAQ Iron and Nishat Mills
The main advantage of trading using opposite ITTEFAQ Iron and Nishat Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITTEFAQ Iron position performs unexpectedly, Nishat Mills 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 Nishat Mills will offset losses from the drop in Nishat Mills' long position.| ITTEFAQ Iron vs. Masood Textile Mills | ITTEFAQ Iron vs. Fauji Foods | ITTEFAQ Iron vs. KSB Pumps | ITTEFAQ Iron vs. Mari Petroleum |
| Nishat Mills vs. Pakistan Hotel Developers | Nishat Mills vs. ITTEFAQ Iron Industries | Nishat Mills vs. Century Insurance | Nishat Mills vs. Air Link Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |