Correlation Between Mughal Iron and Mari Petroleum
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By analyzing existing cross correlation between Mughal Iron Steel and Mari Petroleum, you can compare the effects of market volatilities on Mughal Iron and Mari Petroleum 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 Mari Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mughal Iron and Mari Petroleum.
Diversification Opportunities for Mughal Iron and Mari Petroleum
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mughal and Mari is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mughal Iron Steel and Mari Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mari Petroleum 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 Mari Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mari Petroleum has no effect on the direction of Mughal Iron i.e., Mughal Iron and Mari Petroleum go up and down completely randomly.
Pair Corralation between Mughal Iron and Mari Petroleum
Assuming the 90 days trading horizon Mughal Iron Steel is expected to under-perform the Mari Petroleum. In addition to that, Mughal Iron is 1.33 times more volatile than Mari Petroleum. It trades about 0.0 of its total potential returns per unit of risk. Mari Petroleum is currently generating about 0.29 per unit of volatility. If you would invest 41,444 in Mari Petroleum on September 5, 2024 and sell it today you would earn a total of 6,971 from holding Mari Petroleum or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mughal Iron Steel vs. Mari Petroleum
Performance |
| Timeline |
| Mughal Iron Steel |
| Mari Petroleum |
Mughal Iron and Mari Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mughal Iron and Mari Petroleum
The main advantage of trading using opposite Mughal Iron and Mari Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mughal Iron position performs unexpectedly, Mari Petroleum 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 Mari Petroleum will offset losses from the drop in Mari Petroleum's long position.| Mughal Iron vs. Avanceon | Mughal Iron vs. Grays Leasing | Mughal Iron vs. Murree Brewery | Mughal Iron vs. Oil and Gas |
| Mari Petroleum vs. Pakistan State Oil | Mari Petroleum vs. Pakistan Petroleum | Mari Petroleum vs. Fauji Fertilizer | Mari Petroleum vs. Habib Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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