Correlation Between Tariq CorpPref and Al Khair
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By analyzing existing cross correlation between Tariq CorpPref and Al Khair Gadoon Limited, you can compare the effects of market volatilities on Tariq CorpPref and Al Khair 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 Tariq CorpPref with a short position of Al Khair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tariq CorpPref and Al Khair.
Diversification Opportunities for Tariq CorpPref and Al Khair
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tariq and AKGL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tariq CorpPref and Al Khair Gadoon Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Khair Gadoon and Tariq CorpPref 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 Tariq CorpPref are associated (or correlated) with Al Khair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Khair Gadoon has no effect on the direction of Tariq CorpPref i.e., Tariq CorpPref and Al Khair go up and down completely randomly.
Pair Corralation between Tariq CorpPref and Al Khair
Assuming the 90 days trading horizon Tariq CorpPref is expected to generate 1.44 times more return on investment than Al Khair. However, Tariq CorpPref is 1.44 times more volatile than Al Khair Gadoon Limited. It trades about 0.11 of its potential returns per unit of risk. Al Khair Gadoon Limited is currently generating about 0.11 per unit of risk. If you would invest 294.00 in Tariq CorpPref on September 3, 2024 and sell it today you would earn a total of 331.00 from holding Tariq CorpPref or generate 112.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 53.73% |
| Values | Daily Returns |
Tariq CorpPref vs. Al Khair Gadoon Limited
Performance |
| Timeline |
| Tariq CorpPref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Al Khair Gadoon |
Tariq CorpPref and Al Khair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tariq CorpPref and Al Khair
The main advantage of trading using opposite Tariq CorpPref and Al Khair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tariq CorpPref position performs unexpectedly, Al Khair 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 Al Khair will offset losses from the drop in Al Khair's long position.| Tariq CorpPref vs. Habib Insurance | Tariq CorpPref vs. Pakistan Refinery | Tariq CorpPref vs. Century Insurance | Tariq CorpPref vs. Al Khair Gadoon Limited |
| Al Khair vs. Habib Insurance | Al Khair vs. Pakistan Refinery | Al Khair vs. Century Insurance | Al Khair vs. Reliance Weaving Mills |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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