Correlation Between ORIX Leasing and Karachi 100
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By analyzing existing cross correlation between ORIX Leasing Pakistan and Karachi 100, you can compare the effects of market volatilities on ORIX Leasing and Karachi 100 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 ORIX Leasing with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORIX Leasing and Karachi 100.
Diversification Opportunities for ORIX Leasing and Karachi 100
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ORIX and Karachi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Leasing Pakistan and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and ORIX Leasing 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 ORIX Leasing Pakistan are associated (or correlated) with Karachi 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karachi 100 has no effect on the direction of ORIX Leasing i.e., ORIX Leasing and Karachi 100 go up and down completely randomly.
Pair Corralation between ORIX Leasing and Karachi 100
Assuming the 90 days trading horizon ORIX Leasing Pakistan is expected to generate 1.55 times more return on investment than Karachi 100. However, ORIX Leasing is 1.55 times more volatile than Karachi 100. It trades about 0.17 of its potential returns per unit of risk. Karachi 100 is currently generating about 0.23 per unit of risk. If you would invest 1,905 in ORIX Leasing Pakistan on September 14, 2024 and sell it today you would earn a total of 1,644 from holding ORIX Leasing Pakistan or generate 86.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.35% |
| Values | Daily Returns |
ORIX Leasing Pakistan vs. Karachi 100
Performance |
| Timeline |
ORIX Leasing and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
ORIX Leasing Pakistan
Pair trading matchups for ORIX Leasing
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with ORIX Leasing and Karachi 100
The main advantage of trading using opposite ORIX Leasing and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORIX Leasing position performs unexpectedly, Karachi 100 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 Karachi 100 will offset losses from the drop in Karachi 100's long position.| ORIX Leasing vs. Orient Rental Modaraba | ORIX Leasing vs. MCB Investment Manag | ORIX Leasing vs. Quice Food Industries | ORIX Leasing vs. TPL Insurance |
| Karachi 100 vs. Pakistan Telecommunication | Karachi 100 vs. Unity Foods | Karachi 100 vs. NetSol Technologies | Karachi 100 vs. Dost Steels |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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