Correlation Between 1 Year and Habib Insurance
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By analyzing existing cross correlation between 1 Year GIS and Habib Insurance, you can compare the effects of market volatilities on 1 Year and Habib 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 Habib Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 Year and Habib Insurance.
Diversification Opportunities for 1 Year and Habib Insurance
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between P01GIS230525 and Habib is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding 1 Year GIS and Habib Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habib 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 GIS are associated (or correlated) with Habib Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habib Insurance has no effect on the direction of 1 Year i.e., 1 Year and Habib Insurance go up and down completely randomly.
Pair Corralation between 1 Year and Habib Insurance
Assuming the 90 days trading horizon 1 Year is expected to generate 3.77 times less return on investment than Habib Insurance. But when comparing it to its historical volatility, 1 Year GIS is 15.37 times less risky than Habib Insurance. It trades about 0.48 of its potential returns per unit of risk. Habib Insurance is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Habib Insurance on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Habib Insurance or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 61.9% |
| Values | Daily Returns |
1 Year GIS vs. Habib Insurance
Performance |
| Timeline |
| 1 Year GIS |
| Habib Insurance |
1 Year and Habib Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1 Year and Habib Insurance
The main advantage of trading using opposite 1 Year and Habib Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 Year position performs unexpectedly, Habib 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 Habib Insurance will offset losses from the drop in Habib Insurance's long position.| 1 Year vs. International Steels | 1 Year vs. Mughal Iron Steel | 1 Year vs. Ittehad Chemicals | 1 Year vs. Air Link Communication |
| Habib Insurance vs. Jubilee Life Insurance | Habib Insurance vs. Askari General Insurance | Habib Insurance vs. Century Insurance | Habib Insurance vs. Universal Insurance |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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