Correlation Between Karachi 100 and Fondo Mutuo
Specify exactly 2 symbols:
By analyzing existing cross correlation between Karachi 100 and Fondo Mutuo ETF, you can compare the effects of market volatilities on Karachi 100 and Fondo Mutuo 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 Karachi 100 with a short position of Fondo Mutuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Fondo Mutuo.
Diversification Opportunities for Karachi 100 and Fondo Mutuo
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Karachi and Fondo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Fondo Mutuo ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fondo Mutuo ETF and Karachi 100 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 Karachi 100 are associated (or correlated) with Fondo Mutuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fondo Mutuo ETF has no effect on the direction of Karachi 100 i.e., Karachi 100 and Fondo Mutuo go up and down completely randomly.
Pair Corralation between Karachi 100 and Fondo Mutuo
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.78 times more return on investment than Fondo Mutuo. However, Karachi 100 is 1.27 times less risky than Fondo Mutuo. It trades about 0.26 of its potential returns per unit of risk. Fondo Mutuo ETF is currently generating about 0.05 per unit of risk. If you would invest 6,595,173 in Karachi 100 on February 2, 2024 and sell it today you would earn a total of 515,082 from holding Karachi 100 or generate 7.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 92.86% |
Values | Daily Returns |
Karachi 100 vs. Fondo Mutuo ETF
Performance |
Timeline |
Karachi 100 and Fondo Mutuo Volatility Contrast
Predicted Return Density |
Returns |
Karachi 100
Pair trading matchups for Karachi 100
Fondo Mutuo ETF
Pair trading matchups for Fondo Mutuo
Pair Trading with Karachi 100 and Fondo Mutuo
The main advantage of trading using opposite Karachi 100 and Fondo Mutuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Fondo Mutuo 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 Fondo Mutuo will offset losses from the drop in Fondo Mutuo's long position.Karachi 100 vs. JS Bank | Karachi 100 vs. Habib Insurance | Karachi 100 vs. IBL HealthCare | Karachi 100 vs. Shifa International Hospitals |
Fondo Mutuo vs. Fondo De Inversion | Fondo Mutuo vs. Fondo De Inversion | Fondo Mutuo vs. Fondo de Inversin | Fondo Mutuo vs. Fondo de Inversion |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
CEOs Directory Screen CEOs from public companies around the world | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |