Correlation Between Karachi 100 and KL Technology
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By analyzing existing cross correlation between Karachi 100 and KL Technology, you can compare the effects of market volatilities on Karachi 100 and KL Technology 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 KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and KL Technology.
Diversification Opportunities for Karachi 100 and KL Technology
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Karachi and KLTE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology 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 KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of Karachi 100 i.e., Karachi 100 and KL Technology go up and down completely randomly.
Pair Corralation between Karachi 100 and KL Technology
Assuming the 90 days trading horizon Karachi 100 is expected to generate 0.92 times more return on investment than KL Technology. However, Karachi 100 is 1.09 times less risky than KL Technology. It trades about 0.42 of its potential returns per unit of risk. KL Technology is currently generating about 0.04 per unit of risk. If you would invest 6,679,632 in Karachi 100 on February 1, 2024 and sell it today you would earn a total of 430,623 from holding Karachi 100 or generate 6.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Karachi 100 vs. KL Technology
Performance |
Timeline |
Karachi 100 and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
Karachi 100
Pair trading matchups for Karachi 100
KL Technology
Pair trading matchups for KL Technology
Pair Trading with Karachi 100 and KL Technology
The main advantage of trading using opposite Karachi 100 and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.Karachi 100 vs. JS Bank | Karachi 100 vs. Habib Insurance | Karachi 100 vs. IBL HealthCare | Karachi 100 vs. Shifa International Hospitals |
KL Technology vs. Public Bank Bhd | KL Technology vs. Hong Leong Bank | KL Technology vs. Sports Toto Berhad | KL Technology vs. Apollo Food Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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