Correlation Between Karachi 100 and Silkbank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Karachi 100 and Silkbank, you can compare the effects of market volatilities on Karachi 100 and Silkbank 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 Silkbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Silkbank.
Diversification Opportunities for Karachi 100 and Silkbank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Karachi and Silkbank is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Silkbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkbank 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 Silkbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkbank has no effect on the direction of Karachi 100 i.e., Karachi 100 and Silkbank go up and down completely randomly.
Pair Corralation between Karachi 100 and Silkbank
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.27 times more return on investment than Silkbank. However, Karachi 100 is 3.77 times less risky than Silkbank. It trades about 0.23 of its potential returns per unit of risk. Silkbank is currently generating about 0.03 per unit of risk. If you would invest 7,557,526 in Karachi 100 on August 30, 2024 and sell it today you would earn a total of 2,450,774 from holding Karachi 100 or generate 32.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Karachi 100 vs. Silkbank
Performance |
| Timeline |
Karachi 100 and Silkbank Volatility Contrast
Predicted Return Density |
| Returns |
Karachi 100
Pair trading matchups for Karachi 100
Silkbank
Pair trading matchups for Silkbank
Pair Trading with Karachi 100 and Silkbank
The main advantage of trading using opposite Karachi 100 and Silkbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Silkbank 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 Silkbank will offset losses from the drop in Silkbank's long position.| Karachi 100 vs. National Bank of | Karachi 100 vs. Hi Tech Lubricants | Karachi 100 vs. Atlas Insurance | Karachi 100 vs. Security Investment Bank |
| Silkbank vs. Masood Textile Mills | Silkbank vs. Fauji Foods | Silkbank vs. KSB Pumps | Silkbank 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |