Correlation Between Media Times and Agha Steel
Can any of the company-specific risk be diversified away by investing in both Media Times and Agha Steel 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 Media Times and Agha Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media Times and Agha Steel Industries, you can compare the effects of market volatilities on Media Times and Agha Steel 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 Media Times with a short position of Agha Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media Times and Agha Steel.
Diversification Opportunities for Media Times and Agha Steel
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Media and Agha is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Media Times and Agha Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agha Steel Industries and Media Times 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 Media Times are associated (or correlated) with Agha Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agha Steel Industries has no effect on the direction of Media Times i.e., Media Times and Agha Steel go up and down completely randomly.
Pair Corralation between Media Times and Agha Steel
Assuming the 90 days trading horizon Media Times is expected to generate 1.81 times more return on investment than Agha Steel. However, Media Times is 1.81 times more volatile than Agha Steel Industries. It trades about 0.02 of its potential returns per unit of risk. Agha Steel Industries is currently generating about 0.0 per unit of risk. If you would invest 195.00 in Media Times on August 27, 2024 and sell it today you would lose (1.00) from holding Media Times or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Media Times vs. Agha Steel Industries
Performance |
| Timeline |
| Media Times |
| Agha Steel Industries |
Media Times and Agha Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media Times and Agha Steel
The main advantage of trading using opposite Media Times and Agha Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media Times position performs unexpectedly, Agha Steel 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 Agha Steel will offset losses from the drop in Agha Steel's long position.| Media Times vs. Masood Textile Mills | Media Times vs. Fauji Foods | Media Times vs. KSB Pumps | Media Times vs. Mari Petroleum |
| Agha Steel vs. Habib Insurance | Agha Steel vs. Century Insurance | Agha Steel vs. Reliance Weaving Mills | Agha Steel vs. Media Times |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |