Correlation Between Mari Petroleum and Air Link
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By analyzing existing cross correlation between Mari Petroleum and Air Link Communication, you can compare the effects of market volatilities on Mari Petroleum and Air Link 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 Mari Petroleum with a short position of Air Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mari Petroleum and Air Link.
Diversification Opportunities for Mari Petroleum and Air Link
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mari and Air is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mari Petroleum and Air Link Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Link Communication and Mari Petroleum 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 Mari Petroleum are associated (or correlated) with Air Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Link Communication has no effect on the direction of Mari Petroleum i.e., Mari Petroleum and Air Link go up and down completely randomly.
Pair Corralation between Mari Petroleum and Air Link
Assuming the 90 days trading horizon Mari Petroleum is expected to generate 1.05 times less return on investment than Air Link. In addition to that, Mari Petroleum is 1.2 times more volatile than Air Link Communication. It trades about 0.13 of its total potential returns per unit of risk. Air Link Communication is currently generating about 0.16 per unit of volatility. If you would invest 1,818 in Air Link Communication on November 29, 2024 and sell it today you would earn a total of 16,651 from holding Air Link Communication or generate 915.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mari Petroleum vs. Air Link Communication
Performance |
| Timeline |
| Mari Petroleum |
| Air Link Communication |
Mari Petroleum and Air Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mari Petroleum and Air Link
The main advantage of trading using opposite Mari Petroleum and Air Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mari Petroleum position performs unexpectedly, Air Link 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 Air Link will offset losses from the drop in Air Link's long position.| Mari Petroleum vs. TPL Insurance | Mari Petroleum vs. Ghani Chemical Industries | Mari Petroleum vs. Lotte Chemical Pakistan | Mari Petroleum vs. Atlas Insurance |
| Air Link vs. Media Times | Air Link vs. First Fidelity Leasing | Air Link vs. MCB Investment Manag | Air Link vs. Shifa International Hospitals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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