Correlation Between Karachi 100 and Kohinoor Industries
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By analyzing existing cross correlation between Karachi 100 and Kohinoor Industries, you can compare the effects of market volatilities on Karachi 100 and Kohinoor Industries 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 Kohinoor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Kohinoor Industries.
Diversification Opportunities for Karachi 100 and Kohinoor Industries
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Karachi and Kohinoor is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Kohinoor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Industries 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 Kohinoor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Industries has no effect on the direction of Karachi 100 i.e., Karachi 100 and Kohinoor Industries go up and down completely randomly.
Pair Corralation between Karachi 100 and Kohinoor Industries
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.29 times more return on investment than Kohinoor Industries. However, Karachi 100 is 3.45 times less risky than Kohinoor Industries. It trades about 0.2 of its potential returns per unit of risk. Kohinoor Industries is currently generating about 0.04 per unit of risk. If you would invest 4,080,389 in Karachi 100 on September 3, 2024 and sell it today you would earn a total of 6,247,111 from holding Karachi 100 or generate 153.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.07% |
| Values | Daily Returns |
Karachi 100 vs. Kohinoor Industries
Performance |
| Timeline |
Karachi 100 and Kohinoor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Kohinoor Industries
Pair trading matchups for Kohinoor Industries
Pair Trading with Karachi 100 and Kohinoor Industries
The main advantage of trading using opposite Karachi 100 and Kohinoor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Kohinoor Industries 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 Kohinoor Industries will offset losses from the drop in Kohinoor Industries' long position.| Karachi 100 vs. Pakistan Aluminium Beverage | Karachi 100 vs. Beco Steel | Karachi 100 vs. Atlas Insurance | Karachi 100 vs. Matco Foods |
| Kohinoor Industries vs. Pakistan Telecommunication | Kohinoor Industries vs. Century Insurance | Kohinoor Industries vs. Avanceon | Kohinoor Industries vs. Big Bird Foods |
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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