Correlation Between Khalid Siraj and EFU General
Can any of the company-specific risk be diversified away by investing in both Khalid Siraj and EFU General at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Khalid Siraj and EFU General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khalid Siraj Textile and EFU General Insurance, you can compare the effects of market volatilities on Khalid Siraj and EFU General 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 Khalid Siraj with a short position of EFU General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khalid Siraj and EFU General.
Diversification Opportunities for Khalid Siraj and EFU General
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Khalid and EFU is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Khalid Siraj Textile and EFU General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EFU General Insurance and Khalid Siraj 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 Khalid Siraj Textile are associated (or correlated) with EFU General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EFU General Insurance has no effect on the direction of Khalid Siraj i.e., Khalid Siraj and EFU General go up and down completely randomly.
Pair Corralation between Khalid Siraj and EFU General
Assuming the 90 days trading horizon Khalid Siraj Textile is expected to generate 3.52 times more return on investment than EFU General. However, Khalid Siraj is 3.52 times more volatile than EFU General Insurance. It trades about 0.13 of its potential returns per unit of risk. EFU General Insurance is currently generating about 0.07 per unit of risk. If you would invest 170.00 in Khalid Siraj Textile on November 28, 2024 and sell it today you would earn a total of 653.00 from holding Khalid Siraj Textile or generate 384.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.33% |
| Values | Daily Returns |
Khalid Siraj Textile vs. EFU General Insurance
Performance |
| Timeline |
| Khalid Siraj Textile |
| EFU General Insurance |
Khalid Siraj and EFU General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khalid Siraj and EFU General
The main advantage of trading using opposite Khalid Siraj and EFU General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khalid Siraj position performs unexpectedly, EFU General 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 EFU General will offset losses from the drop in EFU General's long position.| Khalid Siraj vs. The Organic Meat | Khalid Siraj vs. Adamjee Insurance | Khalid Siraj vs. Orient Rental Modaraba | Khalid Siraj vs. Crescent Star Insurance |
| EFU General vs. Habib Insurance | EFU General vs. Meezan Bank | EFU General vs. Century Insurance | EFU General vs. Jubilee Life 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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