Correlation Between Shaheen Insurance and Fateh Sports
Can any of the company-specific risk be diversified away by investing in both Shaheen Insurance and Fateh Sports at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shaheen Insurance and Fateh Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shaheen Insurance and Fateh Sports Wear, you can compare the effects of market volatilities on Shaheen Insurance and Fateh Sports 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 Shaheen Insurance with a short position of Fateh Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaheen Insurance and Fateh Sports.
Diversification Opportunities for Shaheen Insurance and Fateh Sports
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shaheen and Fateh is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shaheen Insurance and Fateh Sports Wear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fateh Sports Wear and Shaheen 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 Shaheen Insurance are associated (or correlated) with Fateh Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fateh Sports Wear has no effect on the direction of Shaheen Insurance i.e., Shaheen Insurance and Fateh Sports go up and down completely randomly.
Pair Corralation between Shaheen Insurance and Fateh Sports
Assuming the 90 days trading horizon Shaheen Insurance is expected to generate 0.57 times more return on investment than Fateh Sports. However, Shaheen Insurance is 1.74 times less risky than Fateh Sports. It trades about 0.1 of its potential returns per unit of risk. Fateh Sports Wear is currently generating about 0.02 per unit of risk. If you would invest 450.00 in Shaheen Insurance on October 13, 2024 and sell it today you would earn a total of 181.00 from holding Shaheen Insurance or generate 40.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 48.51% |
| Values | Daily Returns |
Shaheen Insurance vs. Fateh Sports Wear
Performance |
| Timeline |
| Shaheen Insurance |
| Fateh Sports Wear |
Shaheen Insurance and Fateh Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaheen Insurance and Fateh Sports
The main advantage of trading using opposite Shaheen Insurance and Fateh Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaheen Insurance position performs unexpectedly, Fateh Sports 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 Fateh Sports will offset losses from the drop in Fateh Sports' long position.| Shaheen Insurance vs. WorldCall Telecom | Shaheen Insurance vs. Pakistan Telecommunication | Shaheen Insurance vs. Unilever Pakistan Foods | Shaheen Insurance vs. Fateh Sports Wear |
| Fateh Sports vs. Habib Insurance | Fateh Sports vs. Ghandhara Automobile | Fateh Sports vs. Shadab Textile Mills | Fateh Sports vs. Century 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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