Correlation Between Karachi 100 and Avanceon
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By analyzing existing cross correlation between Karachi 100 and Avanceon, you can compare the effects of market volatilities on Karachi 100 and Avanceon 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 Avanceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Avanceon.
Diversification Opportunities for Karachi 100 and Avanceon
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Karachi and Avanceon is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Avanceon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avanceon 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 Avanceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avanceon has no effect on the direction of Karachi 100 i.e., Karachi 100 and Avanceon go up and down completely randomly.
Pair Corralation between Karachi 100 and Avanceon
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.57 times more return on investment than Avanceon. However, Karachi 100 is 1.76 times less risky than Avanceon. It trades about 0.41 of its potential returns per unit of risk. Avanceon is currently generating about 0.11 per unit of risk. If you would invest 8,896,677 in Karachi 100 on September 1, 2024 and sell it today you would earn a total of 1,239,023 from holding Karachi 100 or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karachi 100 vs. Avanceon
Performance |
| Timeline |
Karachi 100 and Avanceon Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Avanceon
Pair trading matchups for Avanceon
Pair Trading with Karachi 100 and Avanceon
The main advantage of trading using opposite Karachi 100 and Avanceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Avanceon 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 Avanceon will offset losses from the drop in Avanceon's long position.| Karachi 100 vs. Nimir Industrial Chemical | Karachi 100 vs. Shaheen Insurance | Karachi 100 vs. Pakistan Telecommunication | Karachi 100 vs. Reliance Insurance Co |
| Avanceon vs. Masood Textile Mills | Avanceon vs. Fauji Foods | Avanceon vs. KSB Pumps | Avanceon vs. Mari Petroleum |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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