Correlation Between Premier Insurance and Karachi 100
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By analyzing existing cross correlation between Premier Insurance and Karachi 100, you can compare the effects of market volatilities on Premier Insurance 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 Premier Insurance with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Insurance and Karachi 100.
Diversification Opportunities for Premier Insurance and Karachi 100
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Premier and Karachi is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Premier Insurance and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Premier Insurance 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 Premier Insurance 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 Premier Insurance i.e., Premier Insurance and Karachi 100 go up and down completely randomly.
Pair Corralation between Premier Insurance and Karachi 100
Assuming the 90 days trading horizon Premier Insurance is expected to under-perform the Karachi 100. In addition to that, Premier Insurance is 4.37 times more volatile than Karachi 100. It trades about -0.01 of its total potential returns per unit of risk. Karachi 100 is currently generating about 0.26 per unit of volatility. If you would invest 7,421,944 in Karachi 100 on September 3, 2024 and sell it today you would earn a total of 2,905,556 from holding Karachi 100 or generate 39.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 78.05% |
| Values | Daily Returns |
Premier Insurance vs. Karachi 100
Performance |
| Timeline |
Premier Insurance and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
Premier Insurance
Pair trading matchups for Premier Insurance
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Premier Insurance and Karachi 100
The main advantage of trading using opposite Premier Insurance and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Insurance 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.| Premier Insurance vs. TPL Insurance | Premier Insurance vs. Habib Insurance | Premier Insurance vs. Sindh Modaraba Management | Premier Insurance vs. Big Bird Foods |
| Karachi 100 vs. Pakistan Aluminium Beverage | Karachi 100 vs. Beco Steel | Karachi 100 vs. Atlas Insurance | Karachi 100 vs. Matco Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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