Correlation Between Lucky Core and Arif Habib
Can any of the company-specific risk be diversified away by investing in both Lucky Core and Arif Habib 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 Lucky Core and Arif Habib into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucky Core Ind and Arif Habib, you can compare the effects of market volatilities on Lucky Core and Arif Habib 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 Lucky Core with a short position of Arif Habib. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucky Core and Arif Habib.
Diversification Opportunities for Lucky Core and Arif Habib
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lucky and Arif is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lucky Core Ind and Arif Habib in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arif Habib and Lucky Core 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 Lucky Core Ind are associated (or correlated) with Arif Habib. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arif Habib has no effect on the direction of Lucky Core i.e., Lucky Core and Arif Habib go up and down completely randomly.
Pair Corralation between Lucky Core and Arif Habib
Assuming the 90 days trading horizon Lucky Core Ind is expected to generate 0.48 times more return on investment than Arif Habib. However, Lucky Core Ind is 2.08 times less risky than Arif Habib. It trades about 0.13 of its potential returns per unit of risk. Arif Habib is currently generating about 0.04 per unit of risk. If you would invest 63,563 in Lucky Core Ind on August 26, 2024 and sell it today you would earn a total of 52,307 from holding Lucky Core Ind or generate 82.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Lucky Core Ind vs. Arif Habib
Performance |
| Timeline |
| Lucky Core Ind |
| Arif Habib |
Lucky Core and Arif Habib Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucky Core and Arif Habib
The main advantage of trading using opposite Lucky Core and Arif Habib positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucky Core position performs unexpectedly, Arif Habib 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 Arif Habib will offset losses from the drop in Arif Habib's long position.| Lucky Core vs. Habib Insurance | Lucky Core vs. Ghandhara Automobile | Lucky Core vs. Century Insurance | Lucky Core vs. Reliance Weaving Mills |
| Arif Habib vs. Wah Nobel Chemicals | Arif Habib vs. National Bank of | Arif Habib vs. Sardar Chemical Industries | Arif Habib vs. Nimir Industrial Chemical |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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