Correlation Between SME Leasing and Loads
Can any of the company-specific risk be diversified away by investing in both SME Leasing and Loads 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 SME Leasing and Loads into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SME Leasing and Loads, you can compare the effects of market volatilities on SME Leasing and Loads 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 SME Leasing with a short position of Loads. Check out your portfolio center. Please also check ongoing floating volatility patterns of SME Leasing and Loads.
Diversification Opportunities for SME Leasing and Loads
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SME and Loads is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SME Leasing and Loads in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loads and SME Leasing 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 SME Leasing are associated (or correlated) with Loads. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loads has no effect on the direction of SME Leasing i.e., SME Leasing and Loads go up and down completely randomly.
Pair Corralation between SME Leasing and Loads
If you would invest 989.00 in Loads on September 2, 2024 and sell it today you would earn a total of 372.00 from holding Loads or generate 37.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
SME Leasing vs. Loads
Performance |
| Timeline |
| SME Leasing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Loads |
SME Leasing and Loads Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SME Leasing and Loads
The main advantage of trading using opposite SME Leasing and Loads positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SME Leasing position performs unexpectedly, Loads 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 Loads will offset losses from the drop in Loads' long position.| SME Leasing vs. Masood Textile Mills | SME Leasing vs. Fauji Foods | SME Leasing vs. KSB Pumps | SME Leasing vs. Mari Petroleum |
| Loads vs. Hi Tech Lubricants | Loads vs. National Foods | Loads vs. Ghandhara Automobile | Loads vs. Unity 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 Stocks Directory module to find actively traded stocks across global markets.
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