Correlation Between Fateh Sports and ORIX Leasing
Can any of the company-specific risk be diversified away by investing in both Fateh Sports and ORIX Leasing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fateh Sports and ORIX Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fateh Sports Wear and ORIX Leasing Pakistan, you can compare the effects of market volatilities on Fateh Sports and ORIX Leasing 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 Fateh Sports with a short position of ORIX Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fateh Sports and ORIX Leasing.
Diversification Opportunities for Fateh Sports and ORIX Leasing
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fateh and ORIX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fateh Sports Wear and ORIX Leasing Pakistan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORIX Leasing Pakistan and Fateh Sports 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 Fateh Sports Wear are associated (or correlated) with ORIX Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORIX Leasing Pakistan has no effect on the direction of Fateh Sports i.e., Fateh Sports and ORIX Leasing go up and down completely randomly.
Pair Corralation between Fateh Sports and ORIX Leasing
Assuming the 90 days trading horizon Fateh Sports Wear is expected to under-perform the ORIX Leasing. In addition to that, Fateh Sports is 1.46 times more volatile than ORIX Leasing Pakistan. It trades about -0.4 of its total potential returns per unit of risk. ORIX Leasing Pakistan is currently generating about 0.16 per unit of volatility. If you would invest 2,931 in ORIX Leasing Pakistan on October 26, 2024 and sell it today you would earn a total of 692.00 from holding ORIX Leasing Pakistan or generate 23.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 40.98% |
Values | Daily Returns |
Fateh Sports Wear vs. ORIX Leasing Pakistan
Performance |
Timeline |
Fateh Sports Wear |
ORIX Leasing Pakistan |
Fateh Sports and ORIX Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fateh Sports and ORIX Leasing
The main advantage of trading using opposite Fateh Sports and ORIX Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fateh Sports position performs unexpectedly, ORIX Leasing 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 ORIX Leasing will offset losses from the drop in ORIX Leasing's long position.Fateh Sports vs. Askari Bank | Fateh Sports vs. Air Link Communication | Fateh Sports vs. Habib Insurance | Fateh Sports vs. Invest Capital Investment |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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