Correlation Between Shaheen Insurance and Packages
Can any of the company-specific risk be diversified away by investing in both Shaheen Insurance and Packages 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 Packages into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shaheen Insurance and Packages, you can compare the effects of market volatilities on Shaheen Insurance and Packages 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 Packages. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaheen Insurance and Packages.
Diversification Opportunities for Shaheen Insurance and Packages
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shaheen and Packages is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shaheen Insurance and Packages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Packages 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 Packages. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packages has no effect on the direction of Shaheen Insurance i.e., Shaheen Insurance and Packages go up and down completely randomly.
Pair Corralation between Shaheen Insurance and Packages
Assuming the 90 days trading horizon Shaheen Insurance is expected to generate 1.68 times more return on investment than Packages. However, Shaheen Insurance is 1.68 times more volatile than Packages. It trades about -0.1 of its potential returns per unit of risk. Packages is currently generating about -0.28 per unit of risk. If you would invest 679.00 in Shaheen Insurance on November 8, 2024 and sell it today you would lose (57.00) from holding Shaheen Insurance or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Shaheen Insurance vs. Packages
Performance |
| Timeline |
| Shaheen Insurance |
| Packages |
Shaheen Insurance and Packages Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaheen Insurance and Packages
The main advantage of trading using opposite Shaheen Insurance and Packages positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaheen Insurance position performs unexpectedly, Packages 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 Packages will offset losses from the drop in Packages' long position.| Shaheen Insurance vs. Allied Bank | Shaheen Insurance vs. Century Insurance | Shaheen Insurance vs. Sitara Chemical Industries | Shaheen Insurance vs. Habib Insurance |
| Packages vs. National Foods | Packages vs. Atlas Insurance | Packages vs. Adamjee Insurance | Packages vs. Hi Tech Lubricants |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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