Correlation Between Pakistan Tobacco and JS Global
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By analyzing existing cross correlation between Pakistan Tobacco and JS Global Banking, you can compare the effects of market volatilities on Pakistan Tobacco and JS Global 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 Tobacco with a short position of JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pakistan Tobacco and JS Global.
Diversification Opportunities for Pakistan Tobacco and JS Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pakistan and JSGBETF is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pakistan Tobacco and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking and Pakistan Tobacco 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 Tobacco are associated (or correlated) with JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of Pakistan Tobacco i.e., Pakistan Tobacco and JS Global go up and down completely randomly.
Pair Corralation between Pakistan Tobacco and JS Global
Assuming the 90 days trading horizon Pakistan Tobacco is expected to generate 0.94 times more return on investment than JS Global. However, Pakistan Tobacco is 1.06 times less risky than JS Global. It trades about 0.13 of its potential returns per unit of risk. JS Global Banking is currently generating about 0.08 per unit of risk. If you would invest 83,042 in Pakistan Tobacco on August 31, 2024 and sell it today you would earn a total of 40,477 from holding Pakistan Tobacco or generate 48.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.43% |
| Values | Daily Returns |
Pakistan Tobacco vs. JS Global Banking
Performance |
| Timeline |
| Pakistan Tobacco |
| JS Global Banking |
Pakistan Tobacco and JS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pakistan Tobacco and JS Global
The main advantage of trading using opposite Pakistan Tobacco and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pakistan Tobacco position performs unexpectedly, JS Global 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 JS Global will offset losses from the drop in JS Global's long position.| Pakistan Tobacco vs. Al Ghazi Tractors | Pakistan Tobacco vs. Shell Pakistan | Pakistan Tobacco vs. Pakistan State Oil | Pakistan Tobacco vs. Millat Tractors |
| JS Global vs. Habib Insurance | JS Global vs. Century Insurance | JS Global vs. Reliance Weaving Mills | JS Global vs. Media Times |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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