Correlation Between Matco Foods and Karachi 100
Specify exactly 2 symbols:
By analyzing existing cross correlation between Matco Foods and Karachi 100, you can compare the effects of market volatilities on Matco Foods and Karachi 100 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 Matco Foods with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matco Foods and Karachi 100.
Diversification Opportunities for Matco Foods and Karachi 100
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matco and Karachi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Matco Foods and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and Matco Foods 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 Matco Foods are associated (or correlated) with Karachi 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karachi 100 has no effect on the direction of Matco Foods i.e., Matco Foods and Karachi 100 go up and down completely randomly.
Pair Corralation between Matco Foods and Karachi 100
Assuming the 90 days trading horizon Matco Foods is expected to generate 2.37 times more return on investment than Karachi 100. However, Matco Foods is 2.37 times more volatile than Karachi 100. It trades about 0.37 of its potential returns per unit of risk. Karachi 100 is currently generating about 0.34 per unit of risk. If you would invest 2,268 in Matco Foods on October 3, 2024 and sell it today you would earn a total of 2,890 from holding Matco Foods or generate 127.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Matco Foods vs. Karachi 100
Performance |
Timeline |
Matco Foods and Karachi 100 Volatility Contrast
Predicted Return Density |
Returns |
Matco Foods
Pair trading matchups for Matco Foods
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with Matco Foods and Karachi 100
The main advantage of trading using opposite Matco Foods and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matco Foods position performs unexpectedly, Karachi 100 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 Karachi 100 will offset losses from the drop in Karachi 100's long position.Matco Foods vs. Masood Textile Mills | Matco Foods vs. Fauji Foods | Matco Foods vs. KSB Pumps | Matco Foods vs. Mari Petroleum |
Karachi 100 vs. EFU General Insurance | Karachi 100 vs. Allied Bank | Karachi 100 vs. Jubilee Life Insurance | Karachi 100 vs. Bank of Punjab |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
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 | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |