Correlation Between Microsoft and Karachi 100
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By analyzing existing cross correlation between Microsoft and Karachi 100, you can compare the effects of market volatilities on Microsoft and Karachi 100 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 Microsoft with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Karachi 100.
Diversification Opportunities for Microsoft and Karachi 100
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Karachi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Microsoft 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 Microsoft are associated (or correlated) with Karachi 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karachi 100 has no effect on the direction of Microsoft i.e., Microsoft and Karachi 100 go up and down completely randomly.
Pair Corralation between Microsoft and Karachi 100
Given the investment horizon of 90 days Microsoft is expected to under-perform the Karachi 100. In addition to that, Microsoft is 1.76 times more volatile than Karachi 100. It trades about -0.09 of its total potential returns per unit of risk. Karachi 100 is currently generating about -0.04 per unit of volatility. If you would invest 11,525,900 in Karachi 100 on November 30, 2024 and sell it today you would lose (200,700) from holding Karachi 100 or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.35% |
| Values | Daily Returns |
Microsoft vs. Karachi 100
Performance |
| Timeline |
Microsoft and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
Microsoft
Pair trading matchups for Microsoft
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Microsoft and Karachi 100
The main advantage of trading using opposite Microsoft and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Karachi 100 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 Karachi 100 will offset losses from the drop in Karachi 100's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| Karachi 100 vs. Engro Polymer Chemicals | Karachi 100 vs. MCB Investment Manag | Karachi 100 vs. Ghandhara Automobile | Karachi 100 vs. Synthetic Products Enterprises |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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