Correlation Between 1 Year and Shaheen Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between 1 Year IJARA and Shaheen Insurance, you can compare the effects of market volatilities on 1 Year and Shaheen Insurance 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 1 Year with a short position of Shaheen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 Year and Shaheen Insurance.
Diversification Opportunities for 1 Year and Shaheen Insurance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between P01GIS091224 and Shaheen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding 1 Year IJARA and Shaheen Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaheen Insurance and 1 Year 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 1 Year IJARA are associated (or correlated) with Shaheen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaheen Insurance has no effect on the direction of 1 Year i.e., 1 Year and Shaheen Insurance go up and down completely randomly.
Pair Corralation between 1 Year and Shaheen Insurance
Assuming the 90 days trading horizon 1 Year is expected to generate 13.6 times less return on investment than Shaheen Insurance. But when comparing it to its historical volatility, 1 Year IJARA is 93.35 times less risky than Shaheen Insurance. It trades about 1.47 of its potential returns per unit of risk. Shaheen Insurance is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 518.00 in Shaheen Insurance on September 4, 2024 and sell it today you would earn a total of 71.00 from holding Shaheen Insurance or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
1 Year IJARA vs. Shaheen Insurance
Performance |
| Timeline |
| 1 Year IJARA |
| Shaheen Insurance |
1 Year and Shaheen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1 Year and Shaheen Insurance
The main advantage of trading using opposite 1 Year and Shaheen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 Year position performs unexpectedly, Shaheen Insurance 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 Shaheen Insurance will offset losses from the drop in Shaheen Insurance's long position.| 1 Year vs. Shaheen Insurance | 1 Year vs. 786 Investment Limited | 1 Year vs. Ghani Chemical Industries | 1 Year vs. Data Agro |
| Shaheen Insurance vs. Oil and Gas | Shaheen Insurance vs. Pakistan State Oil | Shaheen Insurance vs. Pakistan Petroleum | Shaheen Insurance vs. Fauji Fertilizer |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |