Correlation Between Maple Leaf and Shifa International
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Shifa International 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 Maple Leaf and Shifa International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Cement and Shifa International Hospitals, you can compare the effects of market volatilities on Maple Leaf and Shifa International 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 Maple Leaf with a short position of Shifa International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Shifa International.
Diversification Opportunities for Maple Leaf and Shifa International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Shifa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Cement and Shifa International Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shifa International and Maple Leaf 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 Maple Leaf Cement are associated (or correlated) with Shifa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shifa International has no effect on the direction of Maple Leaf i.e., Maple Leaf and Shifa International go up and down completely randomly.
Pair Corralation between Maple Leaf and Shifa International
If you would invest 11,621 in Shifa International Hospitals on November 2, 2024 and sell it today you would earn a total of 31,779 from holding Shifa International Hospitals or generate 273.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.22% |
| Values | Daily Returns |
Maple Leaf Cement vs. Shifa International Hospitals
Performance |
| Timeline |
| Maple Leaf Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Shifa International |
Maple Leaf and Shifa International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Shifa International
The main advantage of trading using opposite Maple Leaf and Shifa International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Shifa International 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 Shifa International will offset losses from the drop in Shifa International's long position.| Maple Leaf vs. Pakistan Telecommunication | Maple Leaf vs. Shaheen Insurance | Maple Leaf vs. East West Insurance | Maple Leaf vs. Crescent Star Insurance |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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