Correlation Between JS Global and Unilever Pakistan
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By analyzing existing cross correlation between JS Global Banking and Unilever Pakistan Foods, you can compare the effects of market volatilities on JS Global and Unilever Pakistan 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 JS Global with a short position of Unilever Pakistan. Check out your portfolio center. Please also check ongoing floating volatility patterns of JS Global and Unilever Pakistan.
Diversification Opportunities for JS Global and Unilever Pakistan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JSGBETF and Unilever is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding JS Global Banking and Unilever Pakistan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever Pakistan Foods and JS Global 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 JS Global Banking are associated (or correlated) with Unilever Pakistan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever Pakistan Foods has no effect on the direction of JS Global i.e., JS Global and Unilever Pakistan go up and down completely randomly.
Pair Corralation between JS Global and Unilever Pakistan
Assuming the 90 days trading horizon JS Global Banking is expected to generate 3.14 times more return on investment than Unilever Pakistan. However, JS Global is 3.14 times more volatile than Unilever Pakistan Foods. It trades about 0.09 of its potential returns per unit of risk. Unilever Pakistan Foods is currently generating about 0.06 per unit of risk. If you would invest 1,662 in JS Global Banking on September 3, 2024 and sell it today you would earn a total of 513.00 from holding JS Global Banking or generate 30.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.31% |
| Values | Daily Returns |
JS Global Banking vs. Unilever Pakistan Foods
Performance |
| Timeline |
| JS Global Banking |
| Unilever Pakistan Foods |
JS Global and Unilever Pakistan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JS Global and Unilever Pakistan
The main advantage of trading using opposite JS Global and Unilever Pakistan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Global position performs unexpectedly, Unilever Pakistan 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 Unilever Pakistan will offset losses from the drop in Unilever Pakistan's long position.| JS Global vs. Habib Insurance | JS Global vs. Pakistan Refinery | JS Global vs. Century Insurance | JS Global vs. Al Khair Gadoon Limited |
| Unilever Pakistan vs. Adamjee Insurance | Unilever Pakistan vs. Atlas Insurance | Unilever Pakistan vs. East West Insurance | Unilever Pakistan vs. MCB Bank |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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