Correlation Between Nimir Industrial and 1 Year
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By analyzing existing cross correlation between Nimir Industrial Chemical and 1 Year IJARA, you can compare the effects of market volatilities on Nimir Industrial and 1 Year 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 Nimir Industrial with a short position of 1 Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nimir Industrial and 1 Year.
Diversification Opportunities for Nimir Industrial and 1 Year
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nimir and P01GIS091224 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nimir Industrial Chemical and 1 Year IJARA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1 Year IJARA and Nimir Industrial 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 Nimir Industrial Chemical are associated (or correlated) with 1 Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1 Year IJARA has no effect on the direction of Nimir Industrial i.e., Nimir Industrial and 1 Year go up and down completely randomly.
Pair Corralation between Nimir Industrial and 1 Year
Assuming the 90 days trading horizon Nimir Industrial Chemical is expected to generate 58.59 times more return on investment than 1 Year. However, Nimir Industrial is 58.59 times more volatile than 1 Year IJARA. It trades about 0.12 of its potential returns per unit of risk. 1 Year IJARA is currently generating about 1.32 per unit of risk. If you would invest 13,523 in Nimir Industrial Chemical on September 12, 2024 and sell it today you would earn a total of 577.00 from holding Nimir Industrial Chemical or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 78.26% |
| Values | Daily Returns |
Nimir Industrial Chemical vs. 1 Year IJARA
Performance |
| Timeline |
| Nimir Industrial Chemical |
| 1 Year IJARA |
Nimir Industrial and 1 Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nimir Industrial and 1 Year
The main advantage of trading using opposite Nimir Industrial and 1 Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nimir Industrial position performs unexpectedly, 1 Year 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 1 Year will offset losses from the drop in 1 Year's long position.| Nimir Industrial vs. Roshan Packages | Nimir Industrial vs. Packages | Nimir Industrial vs. Ghandhara Automobile | Nimir Industrial vs. Askari Bank |
| 1 Year vs. Nimir Industrial Chemical | 1 Year vs. Jubilee Life Insurance | 1 Year vs. United Insurance | 1 Year vs. Pakistan Tobacco |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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