Correlation Between Loads and Ghani Glass
Can any of the company-specific risk be diversified away by investing in both Loads and Ghani Glass 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 Loads and Ghani Glass into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loads and Ghani Glass, you can compare the effects of market volatilities on Loads and Ghani Glass 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 Loads with a short position of Ghani Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loads and Ghani Glass.
Diversification Opportunities for Loads and Ghani Glass
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loads and Ghani is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Loads and Ghani Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ghani Glass and Loads 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 Loads are associated (or correlated) with Ghani Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ghani Glass has no effect on the direction of Loads i.e., Loads and Ghani Glass go up and down completely randomly.
Pair Corralation between Loads and Ghani Glass
Assuming the 90 days trading horizon Loads is expected to generate 1.6 times more return on investment than Ghani Glass. However, Loads is 1.6 times more volatile than Ghani Glass. It trades about 0.07 of its potential returns per unit of risk. Ghani Glass is currently generating about 0.01 per unit of risk. If you would invest 686.00 in Loads on September 2, 2024 and sell it today you would earn a total of 675.00 from holding Loads or generate 98.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loads vs. Ghani Glass
Performance |
| Timeline |
| Loads |
| Ghani Glass |
Loads and Ghani Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loads and Ghani Glass
The main advantage of trading using opposite Loads and Ghani Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loads position performs unexpectedly, Ghani Glass 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 Ghani Glass will offset losses from the drop in Ghani Glass' long position.| Loads vs. Hi Tech Lubricants | Loads vs. National Foods | Loads vs. Ghandhara Automobile | Loads vs. Unity Foods |
| Ghani Glass vs. Masood Textile Mills | Ghani Glass vs. Fauji Foods | Ghani Glass vs. KSB Pumps | Ghani Glass 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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