Correlation Between Lotte Chemical and EFU General
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By analyzing existing cross correlation between Lotte Chemical Pakistan and EFU General Insurance, you can compare the effects of market volatilities on Lotte Chemical 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 Lotte Chemical with a short position of EFU General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Chemical and EFU General.
Diversification Opportunities for Lotte Chemical and EFU General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lotte and EFU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Chemical Pakistan 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 Lotte Chemical 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 Lotte Chemical Pakistan 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 Lotte Chemical i.e., Lotte Chemical and EFU General go up and down completely randomly.
Pair Corralation between Lotte Chemical and EFU General
Assuming the 90 days trading horizon Lotte Chemical Pakistan is expected to under-perform the EFU General. In addition to that, Lotte Chemical is 1.27 times more volatile than EFU General Insurance. It trades about -0.07 of its total potential returns per unit of risk. EFU General Insurance is currently generating about 0.1 per unit of volatility. If you would invest 11,370 in EFU General Insurance on November 18, 2024 and sell it today you would earn a total of 510.00 from holding EFU General Insurance or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Chemical Pakistan vs. EFU General Insurance
Performance |
| Timeline |
| Lotte Chemical Pakistan |
| EFU General Insurance |
Lotte Chemical and EFU General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Chemical and EFU General
The main advantage of trading using opposite Lotte Chemical and EFU General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Chemical 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.| Lotte Chemical vs. Wah Nobel Chemicals | Lotte Chemical vs. Shifa International Hospitals | Lotte Chemical vs. IBL HealthCare | Lotte Chemical vs. Unilever Pakistan Foods |
| EFU General vs. Pakistan Telecommunication | EFU General vs. Soneri Bank | EFU General vs. Ghandhara Automobile | EFU General vs. Silkbank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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