Correlation Between Jubilee Life and 1 Year
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By analyzing existing cross correlation between Jubilee Life Insurance and 1 Year IJARA, you can compare the effects of market volatilities on Jubilee Life and 1 Year 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 Jubilee Life with a short position of 1 Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Life and 1 Year.
Diversification Opportunities for Jubilee Life and 1 Year
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jubilee and P01GIS091224 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Life Insurance and 1 Year IJARA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1 Year IJARA and Jubilee Life 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 Jubilee Life Insurance are associated (or correlated) with 1 Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1 Year IJARA has no effect on the direction of Jubilee Life i.e., Jubilee Life and 1 Year go up and down completely randomly.
Pair Corralation between Jubilee Life and 1 Year
Assuming the 90 days trading horizon Jubilee Life Insurance is expected to generate 150.34 times more return on investment than 1 Year. However, Jubilee Life is 150.34 times more volatile than 1 Year IJARA. It trades about 0.39 of its potential returns per unit of risk. 1 Year IJARA is currently generating about 1.32 per unit of risk. If you would invest 13,200 in Jubilee Life Insurance on September 12, 2024 and sell it today you would earn a total of 5,297 from holding Jubilee Life Insurance or generate 40.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.26% |
| Values | Daily Returns |
Jubilee Life Insurance vs. 1 Year IJARA
Performance |
| Timeline |
| Jubilee Life Insurance |
| 1 Year IJARA |
Jubilee Life and 1 Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Life and 1 Year
The main advantage of trading using opposite Jubilee Life and 1 Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Life position performs unexpectedly, 1 Year 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 1 Year will offset losses from the drop in 1 Year's long position.| Jubilee Life vs. Masood Textile Mills | Jubilee Life vs. Fauji Foods | Jubilee Life vs. KSB Pumps | Jubilee Life vs. Mari Petroleum |
| 1 Year vs. Nimir Industrial Chemical | 1 Year vs. Jubilee Life Insurance | 1 Year vs. United Insurance | 1 Year vs. Pakistan Tobacco |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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