Correlation Between Mari Petroleum and Engro
Can any of the company-specific risk be diversified away by investing in both Mari Petroleum and Engro 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 Mari Petroleum and Engro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mari Petroleum and Engro, you can compare the effects of market volatilities on Mari Petroleum and Engro 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 Engro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mari Petroleum and Engro.
Diversification Opportunities for Mari Petroleum and Engro
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mari and Engro is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mari Petroleum and Engro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engro 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 Engro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engro has no effect on the direction of Mari Petroleum i.e., Mari Petroleum and Engro go up and down completely randomly.
Pair Corralation between Mari Petroleum and Engro
If you would invest 48,538 in Engro on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Engro or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mari Petroleum vs. Engro
Performance |
| Timeline |
| Mari Petroleum |
| Engro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Mari Petroleum and Engro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mari Petroleum and Engro
The main advantage of trading using opposite Mari Petroleum and Engro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mari Petroleum position performs unexpectedly, Engro 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 Engro will offset losses from the drop in Engro's long position.| Mari Petroleum vs. TPL Insurance | Mari Petroleum vs. Pakistan Reinsurance | Mari Petroleum vs. Askari General Insurance | Mari Petroleum vs. Century Insurance |
| Engro vs. JS Investments | Engro vs. Amreli Steels | Engro vs. ITTEFAQ Iron Industries | Engro vs. Wah Nobel Chemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |