Correlation Between Karachi 100 and Atlas Insurance
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By analyzing existing cross correlation between Karachi 100 and Atlas Insurance, you can compare the effects of market volatilities on Karachi 100 and Atlas Insurance 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 Karachi 100 with a short position of Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Atlas Insurance.
Diversification Opportunities for Karachi 100 and Atlas Insurance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Karachi and Atlas is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance and Karachi 100 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 Karachi 100 are associated (or correlated) with Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Karachi 100 i.e., Karachi 100 and Atlas Insurance go up and down completely randomly.
Pair Corralation between Karachi 100 and Atlas Insurance
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.59 times more return on investment than Atlas Insurance. However, Karachi 100 is 1.69 times less risky than Atlas Insurance. It trades about 0.24 of its potential returns per unit of risk. Atlas Insurance is currently generating about 0.13 per unit of risk. If you would invest 4,166,807 in Karachi 100 on August 31, 2024 and sell it today you would earn a total of 5,968,893 from holding Karachi 100 or generate 143.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 91.21% |
| Values | Daily Returns |
Karachi 100 vs. Atlas Insurance
Performance |
| Timeline |
Karachi 100 and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Atlas Insurance
Pair trading matchups for Atlas Insurance
Pair Trading with Karachi 100 and Atlas Insurance
The main advantage of trading using opposite Karachi 100 and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Atlas Insurance 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Karachi 100 vs. Aisha Steel Mills | Karachi 100 vs. Dost Steels | Karachi 100 vs. Askari General Insurance | Karachi 100 vs. International Steels |
| Atlas Insurance vs. National Foods | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Aisha Steel Mills | Atlas Insurance vs. Lotte Chemical Pakistan |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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