Correlation Between Pakistan Aluminium and Karachi 100
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pakistan Aluminium Beverage and Karachi 100, you can compare the effects of market volatilities on Pakistan Aluminium 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 Pakistan Aluminium with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pakistan Aluminium and Karachi 100.
Diversification Opportunities for Pakistan Aluminium and Karachi 100
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pakistan and Karachi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pakistan Aluminium Beverage and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Pakistan Aluminium 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 Pakistan Aluminium Beverage 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 Pakistan Aluminium i.e., Pakistan Aluminium and Karachi 100 go up and down completely randomly.
Pair Corralation between Pakistan Aluminium and Karachi 100
Assuming the 90 days trading horizon Pakistan Aluminium is expected to generate 2.37 times less return on investment than Karachi 100. In addition to that, Pakistan Aluminium is 1.59 times more volatile than Karachi 100. It trades about 0.11 of its total potential returns per unit of risk. Karachi 100 is currently generating about 0.41 per unit of volatility. If you would invest 8,896,677 in Karachi 100 on September 1, 2024 and sell it today you would earn a total of 1,239,023 from holding Karachi 100 or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pakistan Aluminium Beverage vs. Karachi 100
Performance |
| Timeline |
Pakistan Aluminium and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pakistan Aluminium Beverage
Pair trading matchups for Pakistan Aluminium
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Pakistan Aluminium and Karachi 100
The main advantage of trading using opposite Pakistan Aluminium and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pakistan Aluminium 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.| Pakistan Aluminium vs. Habib Insurance | Pakistan Aluminium vs. Century Insurance | Pakistan Aluminium vs. Reliance Weaving Mills | Pakistan Aluminium vs. Media Times |
| Karachi 100 vs. Nimir Industrial Chemical | Karachi 100 vs. Shaheen Insurance | Karachi 100 vs. Pakistan Telecommunication | Karachi 100 vs. Reliance Insurance Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |