Correlation Between Karachi 100 and Media Times
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By analyzing existing cross correlation between Karachi 100 and Media Times, you can compare the effects of market volatilities on Karachi 100 and Media Times 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 Media Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Media Times.
Diversification Opportunities for Karachi 100 and Media Times
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Karachi and Media is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Media Times in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media Times 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 Media Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media Times has no effect on the direction of Karachi 100 i.e., Karachi 100 and Media Times go up and down completely randomly.
Pair Corralation between Karachi 100 and Media Times
Assuming the 90 days trading horizon Karachi 100 is expected to generate 1.8 times less return on investment than Media Times. But when comparing it to its historical volatility, Karachi 100 is 4.41 times less risky than Media Times. It trades about 0.19 of its potential returns per unit of risk. Media Times is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 206.00 in Media Times on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Media Times or generate 6.31% 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. Media Times
Performance |
| Timeline |
Karachi 100 and Media Times Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Media Times
Pair trading matchups for Media Times
Pair Trading with Karachi 100 and Media Times
The main advantage of trading using opposite Karachi 100 and Media Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Media Times 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 Media Times will offset losses from the drop in Media Times' long position.| Karachi 100 vs. Packages | Karachi 100 vs. Security Investment Bank | Karachi 100 vs. Pakistan Aluminium Beverage | Karachi 100 vs. National Foods |
| Media Times vs. Masood Textile Mills | Media Times vs. Fauji Foods | Media Times vs. KSB Pumps | Media Times 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 CEOs Directory module to screen CEOs from public companies around the world.
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