Correlation Between Murree Brewery and Air Link
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By analyzing existing cross correlation between Murree Brewery and Air Link Communication, you can compare the effects of market volatilities on Murree Brewery and Air Link 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 Murree Brewery with a short position of Air Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murree Brewery and Air Link.
Diversification Opportunities for Murree Brewery and Air Link
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Murree and Air is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Murree Brewery and Air Link Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Link Communication and Murree Brewery 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 Murree Brewery are associated (or correlated) with Air Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Link Communication has no effect on the direction of Murree Brewery i.e., Murree Brewery and Air Link go up and down completely randomly.
Pair Corralation between Murree Brewery and Air Link
Assuming the 90 days trading horizon Murree Brewery is expected to generate 0.6 times more return on investment than Air Link. However, Murree Brewery is 1.67 times less risky than Air Link. It trades about 0.36 of its potential returns per unit of risk. Air Link Communication is currently generating about -0.02 per unit of risk. If you would invest 59,745 in Murree Brewery on August 28, 2024 and sell it today you would earn a total of 7,255 from holding Murree Brewery or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Murree Brewery vs. Air Link Communication
Performance |
| Timeline |
| Murree Brewery |
| Air Link Communication |
Murree Brewery and Air Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murree Brewery and Air Link
The main advantage of trading using opposite Murree Brewery and Air Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murree Brewery position performs unexpectedly, Air Link 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 Air Link will offset losses from the drop in Air Link's long position.| Murree Brewery vs. Habib Insurance | Murree Brewery vs. Century Insurance | Murree Brewery vs. Reliance Weaving Mills | Murree Brewery vs. Media Times |
| Air Link vs. Data Agro | Air Link vs. Grays Leasing | Air Link vs. Habib Insurance | Air Link vs. Jubilee Life Insurance |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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