Correlation Between Orient Rental and Karachi 100
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By analyzing existing cross correlation between Orient Rental Modaraba and Karachi 100, you can compare the effects of market volatilities on Orient Rental 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 Orient Rental with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Rental and Karachi 100.
Diversification Opportunities for Orient Rental and Karachi 100
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Orient and Karachi is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Orient Rental Modaraba and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Orient Rental 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 Orient Rental Modaraba 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 Orient Rental i.e., Orient Rental and Karachi 100 go up and down completely randomly.
Pair Corralation between Orient Rental and Karachi 100
Assuming the 90 days trading horizon Orient Rental Modaraba is expected to generate 2.63 times more return on investment than Karachi 100. However, Orient Rental is 2.63 times more volatile than Karachi 100. It trades about 0.09 of its potential returns per unit of risk. Karachi 100 is currently generating about 0.2 per unit of risk. If you would invest 401.00 in Orient Rental Modaraba on November 19, 2024 and sell it today you would earn a total of 374.00 from holding Orient Rental Modaraba or generate 93.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 64.6% |
| Values | Daily Returns |
Orient Rental Modaraba vs. Karachi 100
Performance |
| Timeline |
Orient Rental and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
Orient Rental Modaraba
Pair trading matchups for Orient Rental
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Orient Rental and Karachi 100
The main advantage of trading using opposite Orient Rental and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Rental 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.| Orient Rental vs. Crescent Star Insurance | Orient Rental vs. Ittehad Chemicals | Orient Rental vs. EFU General Insurance | Orient Rental vs. IGI Life Insurance |
| Karachi 100 vs. Grays Leasing | Karachi 100 vs. Air Link Communication | Karachi 100 vs. Invest Capital Investment | Karachi 100 vs. MCB Investment Manag |
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 CEOs Directory module to screen CEOs from public companies around the world.
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