Correlation Between Mughal Iron and Premier Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between Mughal Iron Steel and Premier Insurance, you can compare the effects of market volatilities on Mughal Iron and Premier 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 Premier Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mughal Iron and Premier Insurance.
Diversification Opportunities for Mughal Iron and Premier Insurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mughal and Premier is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mughal Iron Steel and Premier Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier 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 Premier Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Insurance has no effect on the direction of Mughal Iron i.e., Mughal Iron and Premier Insurance go up and down completely randomly.
Pair Corralation between Mughal Iron and Premier Insurance
Assuming the 90 days trading horizon Mughal Iron Steel is expected to generate 0.85 times more return on investment than Premier Insurance. However, Mughal Iron Steel is 1.17 times less risky than Premier Insurance. It trades about -0.01 of its potential returns per unit of risk. Premier Insurance is currently generating about -0.06 per unit of risk. If you would invest 8,506 in Mughal Iron Steel on November 2, 2024 and sell it today you would lose (684.00) from holding Mughal Iron Steel or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.81% |
| Values | Daily Returns |
Mughal Iron Steel vs. Premier Insurance
Performance |
| Timeline |
| Mughal Iron Steel |
| Premier Insurance |
Mughal Iron and Premier Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mughal Iron and Premier Insurance
The main advantage of trading using opposite Mughal Iron and Premier Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mughal Iron position performs unexpectedly, Premier 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 Premier Insurance will offset losses from the drop in Premier Insurance's long position.| Mughal Iron vs. Shaheen Insurance | Mughal Iron vs. Atlas Insurance | Mughal Iron vs. Air Link Communication | Mughal Iron vs. Jubilee Life Insurance |
| Premier Insurance vs. Masood Textile Mills | Premier Insurance vs. Fauji Foods | Premier Insurance vs. KSB Pumps | Premier Insurance vs. Mari Petroleum |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |