Correlation Between Karachi 100 and Swiss Leader
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By analyzing existing cross correlation between Karachi 100 and Swiss Leader Price, you can compare the effects of market volatilities on Karachi 100 and Swiss Leader 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 Swiss Leader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karachi 100 and Swiss Leader.
Diversification Opportunities for Karachi 100 and Swiss Leader
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Karachi and Swiss is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Karachi 100 and Swiss Leader Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Leader Price 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 Swiss Leader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Leader Price has no effect on the direction of Karachi 100 i.e., Karachi 100 and Swiss Leader go up and down completely randomly.
Pair Corralation between Karachi 100 and Swiss Leader
Assuming the 90 days trading horizon Karachi 100 is expected to generate 1.06 times more return on investment than Swiss Leader. However, Karachi 100 is 1.06 times more volatile than Swiss Leader Price. It trades about 0.42 of its potential returns per unit of risk. Swiss Leader Price is currently generating about -0.2 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 Together |
Strength | Insignificant |
Accuracy | 86.36% |
Values | Daily Returns |
Karachi 100 vs. Swiss Leader Price
Performance |
Timeline |
Karachi 100 and Swiss Leader Volatility Contrast
Predicted Return Density |
Returns |
Karachi 100
Pair trading matchups for Karachi 100
Swiss Leader Price
Pair trading matchups for Swiss Leader
Pair Trading with Karachi 100 and Swiss Leader
The main advantage of trading using opposite Karachi 100 and Swiss Leader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karachi 100 position performs unexpectedly, Swiss Leader 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 Swiss Leader will offset losses from the drop in Swiss Leader's long position.Karachi 100 vs. JS Bank | Karachi 100 vs. Habib Insurance | Karachi 100 vs. IBL HealthCare | Karachi 100 vs. Shifa International Hospitals |
Swiss Leader vs. St Galler Kantonalbank | Swiss Leader vs. Basellandschaftliche Kantonalbank | Swiss Leader vs. Cicor Technologies | Swiss Leader vs. Zuger Kantonalbank |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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