Correlation Between China Securities and Karachi 100
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By analyzing existing cross correlation between China Securities 800 and Karachi 100, you can compare the effects of market volatilities on China Securities and Karachi 100 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 China Securities with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Karachi 100.
Diversification Opportunities for China Securities and Karachi 100
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Karachi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and China Securities 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 China Securities 800 are associated (or correlated) with Karachi 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karachi 100 has no effect on the direction of China Securities i.e., China Securities and Karachi 100 go up and down completely randomly.
Pair Corralation between China Securities and Karachi 100
Assuming the 90 days trading horizon China Securities is expected to generate 9.45 times less return on investment than Karachi 100. In addition to that, China Securities is 1.61 times more volatile than Karachi 100. It trades about 0.05 of its total potential returns per unit of risk. Karachi 100 is currently generating about 0.82 per unit of volatility. If you would invest 6,679,632 in Karachi 100 on January 30, 2024 and sell it today you would earn a total of 594,862 from holding Karachi 100 or generate 8.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 85.0% |
Values | Daily Returns |
China Securities 800 vs. Karachi 100
Performance |
Timeline |
China Securities and Karachi 100 Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with China Securities and Karachi 100
The main advantage of trading using opposite China Securities and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Karachi 100 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 Karachi 100 will offset losses from the drop in Karachi 100's long position.China Securities vs. Hubei Xingfa Chemicals | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Do Fluoride Chemicals Co | China Securities vs. Porton Fine Chemicals |
Karachi 100 vs. Engro Polymer Chemicals | Karachi 100 vs. Atlas Insurance | Karachi 100 vs. Shaheen Insurance | Karachi 100 vs. TPL 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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