Correlation Between Nestle Pakistan and National Refinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nestle Pakistan and National Refinery, you can compare the effects of market volatilities on Nestle Pakistan and National Refinery 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 Nestle Pakistan with a short position of National Refinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nestle Pakistan and National Refinery.
Diversification Opportunities for Nestle Pakistan and National Refinery
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nestle and National is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nestle Pakistan and National Refinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Refinery and Nestle Pakistan 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 Nestle Pakistan are associated (or correlated) with National Refinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Refinery has no effect on the direction of Nestle Pakistan i.e., Nestle Pakistan and National Refinery go up and down completely randomly.
Pair Corralation between Nestle Pakistan and National Refinery
Assuming the 90 days trading horizon Nestle Pakistan is expected to under-perform the National Refinery. But the stock apears to be less risky and, when comparing its historical volatility, Nestle Pakistan is 4.35 times less risky than National Refinery. The stock trades about -0.04 of its potential returns per unit of risk. The National Refinery is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 20,867 in National Refinery on August 31, 2024 and sell it today you would earn a total of 2,972 from holding National Refinery or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nestle Pakistan vs. National Refinery
Performance |
| Timeline |
| Nestle Pakistan |
| National Refinery |
Nestle Pakistan and National Refinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nestle Pakistan and National Refinery
The main advantage of trading using opposite Nestle Pakistan and National Refinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nestle Pakistan position performs unexpectedly, National Refinery 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 National Refinery will offset losses from the drop in National Refinery's long position.| Nestle Pakistan vs. Quice Food Industries | Nestle Pakistan vs. Agha Steel Industries | Nestle Pakistan vs. National Foods | Nestle Pakistan vs. Pakistan Aluminium Beverage |
| National Refinery vs. National Bank of | National Refinery vs. United Bank | National Refinery vs. Bank Alfalah | National Refinery vs. Allied 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |