Correlation Between Karachi 100 and KSB Pumps
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By analyzing existing cross correlation between Karachi 100 and KSB Pumps, you can compare the effects of market volatilities on Karachi 100 and KSB Pumps 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 KSB Pumps. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and KSB Pumps.
Diversification Opportunities for Karachi 100 and KSB Pumps
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Karachi and KSB is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and KSB Pumps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB Pumps 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 KSB Pumps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB Pumps has no effect on the direction of Karachi 100 i.e., Karachi 100 and KSB Pumps go up and down completely randomly.
Pair Corralation between Karachi 100 and KSB Pumps
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.27 times more return on investment than KSB Pumps. However, Karachi 100 is 3.66 times less risky than KSB Pumps. It trades about 0.54 of its potential returns per unit of risk. KSB Pumps is currently generating about 0.06 per unit of risk. If you would invest 8,894,599 in Karachi 100 on August 25, 2024 and sell it today you would earn a total of 885,224 from holding Karachi 100 or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karachi 100 vs. KSB Pumps
Performance |
| Timeline |
Karachi 100 and KSB Pumps Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
KSB Pumps
Pair trading matchups for KSB Pumps
Pair Trading with Karachi 100 and KSB Pumps
The main advantage of trading using opposite Karachi 100 and KSB Pumps positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, KSB Pumps 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 KSB Pumps will offset losses from the drop in KSB Pumps' long position.| Karachi 100 vs. Security Investment Bank | Karachi 100 vs. Mughal Iron Steel | Karachi 100 vs. International Steels | Karachi 100 vs. JS Investments |
| KSB Pumps vs. JS Global Banking | KSB Pumps vs. Wah Nobel Chemicals | KSB Pumps vs. Unity Foods | KSB Pumps vs. Adamjee Insurance |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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