Correlation Between Mughal Iron and Aisha Steel
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By analyzing existing cross correlation between Mughal Iron Steel and Aisha Steel Mills, you can compare the effects of market volatilities on Mughal Iron and Aisha 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 Mughal Iron with a short position of Aisha Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mughal Iron and Aisha Steel.
Diversification Opportunities for Mughal Iron and Aisha Steel
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mughal and Aisha is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mughal Iron Steel and Aisha Steel Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aisha Steel Mills and Mughal Iron 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 Mughal Iron Steel are associated (or correlated) with Aisha Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aisha Steel Mills has no effect on the direction of Mughal Iron i.e., Mughal Iron and Aisha Steel go up and down completely randomly.
Pair Corralation between Mughal Iron and Aisha Steel
Assuming the 90 days trading horizon Mughal Iron Steel is expected to under-perform the Aisha Steel. But the stock apears to be less risky and, when comparing its historical volatility, Mughal Iron Steel is 1.21 times less risky than Aisha Steel. The stock trades about -0.16 of its potential returns per unit of risk. The Aisha Steel Mills is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Aisha Steel Mills on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Aisha Steel Mills or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mughal Iron Steel vs. Aisha Steel Mills
Performance |
| Timeline |
| Mughal Iron Steel |
| Aisha Steel Mills |
Mughal Iron and Aisha Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mughal Iron and Aisha Steel
The main advantage of trading using opposite Mughal Iron and Aisha Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mughal Iron position performs unexpectedly, Aisha 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 Aisha Steel will offset losses from the drop in Aisha Steel's long position.| Mughal Iron vs. Dost Steels | Mughal Iron vs. WorldCall Telecom | Mughal Iron vs. Reliance Insurance Co | Mughal Iron vs. Aisha Steel Mills |
| Aisha Steel vs. TPL Insurance | Aisha Steel vs. Silkbank | Aisha Steel vs. Adamjee Insurance | Aisha Steel vs. Agritech |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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