Correlation Between Lucky Core and Habib Insurance
Can any of the company-specific risk be diversified away by investing in both Lucky Core and Habib Insurance 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 Habib Insurance 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 Habib Insurance, you can compare the effects of market volatilities on Lucky Core and Habib Insurance 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 Habib Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucky Core and Habib Insurance.
Diversification Opportunities for Lucky Core and Habib Insurance
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lucky and Habib is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lucky Core Ind and Habib Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habib Insurance 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 Habib Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habib Insurance has no effect on the direction of Lucky Core i.e., Lucky Core and Habib Insurance go up and down completely randomly.
Pair Corralation between Lucky Core and Habib Insurance
Assuming the 90 days trading horizon Lucky Core is expected to generate 1.17 times less return on investment than Habib Insurance. But when comparing it to its historical volatility, Lucky Core Ind is 2.12 times less risky than Habib Insurance. It trades about 0.08 of its potential returns per unit of risk. Habib Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 492.00 in Habib Insurance on August 27, 2024 and sell it today you would earn a total of 208.00 from holding Habib Insurance or generate 42.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.65% |
| Values | Daily Returns |
Lucky Core Ind vs. Habib Insurance
Performance |
| Timeline |
| Lucky Core Ind |
| Habib Insurance |
Lucky Core and Habib Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucky Core and Habib Insurance
The main advantage of trading using opposite Lucky Core and Habib Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucky Core position performs unexpectedly, Habib Insurance 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 Habib Insurance will offset losses from the drop in Habib Insurance's long position.| Lucky Core vs. Habib Insurance | Lucky Core vs. Ghandhara Automobile | Lucky Core vs. Century Insurance | Lucky Core vs. Reliance Weaving Mills |
| Habib Insurance vs. Habib Bank | Habib Insurance vs. National Bank of | Habib Insurance vs. United Bank | Habib Insurance vs. MCB Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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