Correlation Between Mughal Iron and Atlas Insurance
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By analyzing existing cross correlation between Mughal Iron Steel and Atlas Insurance, you can compare the effects of market volatilities on Mughal Iron and Atlas Insurance 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 Atlas Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mughal Iron and Atlas Insurance.
Diversification Opportunities for Mughal Iron and Atlas Insurance
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mughal and Atlas is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mughal Iron Steel and Atlas Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Insurance 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 Atlas Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Insurance has no effect on the direction of Mughal Iron i.e., Mughal Iron and Atlas Insurance go up and down completely randomly.
Pair Corralation between Mughal Iron and Atlas Insurance
Assuming the 90 days trading horizon Mughal Iron Steel is expected to under-perform the Atlas Insurance. In addition to that, Mughal Iron is 1.3 times more volatile than Atlas Insurance. It trades about -0.21 of its total potential returns per unit of risk. Atlas Insurance is currently generating about 0.43 per unit of volatility. If you would invest 4,480 in Atlas Insurance on August 24, 2024 and sell it today you would earn a total of 991.00 from holding Atlas Insurance or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mughal Iron Steel vs. Atlas Insurance
Performance |
| Timeline |
| Mughal Iron Steel |
| Atlas Insurance |
Mughal Iron and Atlas Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mughal Iron and Atlas Insurance
The main advantage of trading using opposite Mughal Iron and Atlas Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mughal Iron position performs unexpectedly, Atlas Insurance 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 Atlas Insurance will offset losses from the drop in Atlas Insurance's long position.| Mughal Iron vs. 786 Investment Limited | Mughal Iron vs. Crescent Star Insurance | Mughal Iron vs. Security Investment Bank | Mughal Iron vs. Escorts Investment Bank |
| Atlas Insurance vs. Oil and Gas | Atlas Insurance vs. Lotte Chemical Pakistan | Atlas Insurance vs. Ghani Chemical Industries | Atlas Insurance vs. Unity Foods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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