Ghandhara Automobile Correlations
| GAL Stock | 256.22 5.89 2.35% |
The current 90-days correlation between Ghandhara Automobile and Pakistan Aluminium Beverage is 0.34 (i.e., Weak diversification). The correlation of Ghandhara Automobile is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Ghandhara Automobile Correlation With Market
Good diversification
The correlation between Ghandhara Automobile and DJI is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ghandhara Automobile and DJI in the same portfolio, assuming nothing else is changed.
Ghandhara |
The ability to find closely correlated positions to Ghandhara Automobile could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ghandhara Automobile when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ghandhara Automobile - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ghandhara Automobile to buy it.
Related Correlations Analysis
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Risk-Adjusted Indicators
There is a big difference between Ghandhara Stock performing well and Ghandhara Automobile Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Ghandhara Automobile's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| PABC | 1.33 | 0.22 | 0.08 | (1.27) | 1.05 | 4.78 | 9.87 | |||
| 786 | 3.43 | 0.52 | 0.07 | (0.41) | 3.48 | 8.70 | 22.19 | |||
| PKGS | 2.06 | 0.39 | 0.17 | 1.08 | 1.62 | 5.73 | 12.50 | |||
| ORM | 1.94 | 0.61 | 0.14 | (0.63) | 2.12 | 4.91 | 21.76 | |||
| UPFL | 0.72 | 0.22 | 0.12 | (5.89) | 0.67 | 1.78 | 5.96 |
Ghandhara Automobile Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Ghandhara Automobile stock to make a market-neutral strategy. Peer analysis of Ghandhara Automobile could also be used in its relative valuation, which is a method of valuing Ghandhara Automobile by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |