Correlation Between Murree Brewery and At Tahur
Can any of the company-specific risk be diversified away by investing in both Murree Brewery and At Tahur at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Murree Brewery and At Tahur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murree Brewery and At Tahur, you can compare the effects of market volatilities on Murree Brewery and At Tahur 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 At Tahur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murree Brewery and At Tahur.
Diversification Opportunities for Murree Brewery and At Tahur
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Murree and PREMA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Murree Brewery and At Tahur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Tahur 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 At Tahur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Tahur has no effect on the direction of Murree Brewery i.e., Murree Brewery and At Tahur go up and down completely randomly.
Pair Corralation between Murree Brewery and At Tahur
Assuming the 90 days trading horizon Murree Brewery is expected to generate 0.69 times more return on investment than At Tahur. However, Murree Brewery is 1.45 times less risky than At Tahur. It trades about 0.11 of its potential returns per unit of risk. At Tahur is currently generating about 0.06 per unit of risk. If you would invest 29,410 in Murree Brewery on November 28, 2024 and sell it today you would earn a total of 47,608 from holding Murree Brewery or generate 161.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.75% |
| Values | Daily Returns |
Murree Brewery vs. At Tahur
Performance |
| Timeline |
| Murree Brewery |
| At Tahur |
Murree Brewery and At Tahur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Murree Brewery and At Tahur
The main advantage of trading using opposite Murree Brewery and At Tahur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murree Brewery position performs unexpectedly, At Tahur 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 At Tahur will offset losses from the drop in At Tahur's long position.| Murree Brewery vs. Ittehad Chemicals | Murree Brewery vs. Wah Nobel Chemicals | Murree Brewery vs. IGI Life Insurance | Murree Brewery vs. ORIX Leasing Pakistan |
| At Tahur vs. Engro Polymer Chemicals | At Tahur vs. Ittehad Chemicals | At Tahur vs. Wah Nobel Chemicals | At Tahur vs. JS Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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