Correlation Between Tariq CorpPref and Ghandhara Automobile
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By analyzing existing cross correlation between Tariq CorpPref and Ghandhara Automobile, you can compare the effects of market volatilities on Tariq CorpPref and Ghandhara Automobile 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 Ghandhara Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tariq CorpPref and Ghandhara Automobile.
Diversification Opportunities for Tariq CorpPref and Ghandhara Automobile
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tariq and Ghandhara is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tariq CorpPref and Ghandhara Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ghandhara Automobile 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 Ghandhara Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ghandhara Automobile has no effect on the direction of Tariq CorpPref i.e., Tariq CorpPref and Ghandhara Automobile go up and down completely randomly.
Pair Corralation between Tariq CorpPref and Ghandhara Automobile
Assuming the 90 days trading horizon Tariq CorpPref is expected to generate 13.03 times less return on investment than Ghandhara Automobile. In addition to that, Tariq CorpPref is 1.48 times more volatile than Ghandhara Automobile. It trades about 0.01 of its total potential returns per unit of risk. Ghandhara Automobile is currently generating about 0.17 per unit of volatility. If you would invest 3,338 in Ghandhara Automobile on November 5, 2024 and sell it today you would earn a total of 43,466 from holding Ghandhara Automobile or generate 1302.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 32.78% |
| Values | Daily Returns |
Tariq CorpPref vs. Ghandhara Automobile
Performance |
| Timeline |
| Tariq CorpPref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Ghandhara Automobile |
Tariq CorpPref and Ghandhara Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tariq CorpPref and Ghandhara Automobile
The main advantage of trading using opposite Tariq CorpPref and Ghandhara Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tariq CorpPref position performs unexpectedly, Ghandhara Automobile 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 Ghandhara Automobile will offset losses from the drop in Ghandhara Automobile's long position.| Tariq CorpPref vs. Habib Insurance | Tariq CorpPref vs. Ghandhara Automobile | Tariq CorpPref vs. Shadab Textile Mills | Tariq CorpPref vs. Century Insurance |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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