Correlation Between Karachi 100 and Security Investment
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By analyzing existing cross correlation between Karachi 100 and Security Investment Bank, you can compare the effects of market volatilities on Karachi 100 and Security Investment 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 Security Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Security Investment.
Diversification Opportunities for Karachi 100 and Security Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Karachi and Security is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Security Investment Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Investment Bank 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 Security Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Investment Bank has no effect on the direction of Karachi 100 i.e., Karachi 100 and Security Investment go up and down completely randomly.
Pair Corralation between Karachi 100 and Security Investment
Assuming the 90 days trading horizon Karachi 100 is expected to generate 1.07 times less return on investment than Security Investment. But when comparing it to its historical volatility, Karachi 100 is 3.37 times less risky than Security Investment. It trades about 0.19 of its potential returns per unit of risk. Security Investment Bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 483.00 in Security Investment Bank on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Security Investment Bank or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Karachi 100 vs. Security Investment Bank
Performance |
| Timeline |
Karachi 100 and Security Investment Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Security Investment Bank
Pair trading matchups for Security Investment
Pair Trading with Karachi 100 and Security Investment
The main advantage of trading using opposite Karachi 100 and Security Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Security Investment 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 Security Investment will offset losses from the drop in Security Investment's long position.| Karachi 100 vs. Packages | Karachi 100 vs. Security Investment Bank | Karachi 100 vs. Pakistan Aluminium Beverage | Karachi 100 vs. National Foods |
| Security Investment vs. Masood Textile Mills | Security Investment vs. Fauji Foods | Security Investment vs. KSB Pumps | Security Investment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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