Correlation Between Packages and Karachi 100
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By analyzing existing cross correlation between Packages and Karachi 100, you can compare the effects of market volatilities on Packages 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 Packages with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Packages and Karachi 100.
Diversification Opportunities for Packages and Karachi 100
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Packages and Karachi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Packages and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Packages 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 Packages 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 Packages i.e., Packages and Karachi 100 go up and down completely randomly.
Pair Corralation between Packages and Karachi 100
Assuming the 90 days trading horizon Packages is expected to generate 2.73 times more return on investment than Karachi 100. However, Packages is 2.73 times more volatile than Karachi 100. It trades about 0.32 of its potential returns per unit of risk. Karachi 100 is currently generating about 0.19 per unit of risk. If you would invest 44,435 in Packages on August 28, 2024 and sell it today you would earn a total of 10,447 from holding Packages or generate 23.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Packages vs. Karachi 100
Performance |
| Timeline |
Packages and Karachi 100 Volatility Contrast
Predicted Return Density |
| Returns |
Packages
Pair trading matchups for Packages
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Packages and Karachi 100
The main advantage of trading using opposite Packages and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Packages 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.| Packages vs. Unilever Pakistan Foods | Packages vs. Pakistan Aluminium Beverage | Packages vs. National Foods | Packages vs. Big Bird Foods |
| Karachi 100 vs. Packages | Karachi 100 vs. Security Investment Bank | Karachi 100 vs. Pakistan Aluminium Beverage | Karachi 100 vs. National 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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