Correlation Between Karachi 100 and First Credit
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By analyzing existing cross correlation between Karachi 100 and First Credit And, you can compare the effects of market volatilities on Karachi 100 and First Credit 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 First Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and First Credit.
Diversification Opportunities for Karachi 100 and First Credit
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Karachi and First is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and First Credit And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Credit And 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 First Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Credit And has no effect on the direction of Karachi 100 i.e., Karachi 100 and First Credit go up and down completely randomly.
Pair Corralation between Karachi 100 and First Credit
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.3 times more return on investment than First Credit. However, Karachi 100 is 3.33 times less risky than First Credit. It trades about 0.35 of its potential returns per unit of risk. First Credit And is currently generating about 0.03 per unit of risk. If you would invest 9,085,985 in Karachi 100 on September 2, 2024 and sell it today you would earn a total of 1,049,715 from holding Karachi 100 or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Karachi 100 vs. First Credit And
Performance |
| Timeline |
Karachi 100 and First Credit Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
First Credit And
Pair trading matchups for First Credit
Pair Trading with Karachi 100 and First Credit
The main advantage of trading using opposite Karachi 100 and First Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, First Credit 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 First Credit will offset losses from the drop in First Credit's long position.| Karachi 100 vs. JS Investments | Karachi 100 vs. East West Insurance | Karachi 100 vs. Premier Insurance | Karachi 100 vs. Wah Nobel Chemicals |
| First Credit vs. Masood Textile Mills | First Credit vs. Fauji Foods | First Credit vs. KSB Pumps | First Credit 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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