Correlation Between HNX 30 and Karachi 100
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By analyzing existing cross correlation between HNX 30 and Karachi 100, you can compare the effects of market volatilities on HNX 30 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 HNX 30 with a short position of Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNX 30 and Karachi 100.
Diversification Opportunities for HNX 30 and Karachi 100
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HNX and Karachi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding HNX 30 and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 and HNX 30 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 HNX 30 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 HNX 30 i.e., HNX 30 and Karachi 100 go up and down completely randomly.
Pair Corralation between HNX 30 and Karachi 100
Assuming the 90 days trading horizon HNX 30 is expected to under-perform the Karachi 100. In addition to that, HNX 30 is 2.93 times more volatile than Karachi 100. It trades about -0.18 of its total potential returns per unit of risk. Karachi 100 is currently generating about 0.33 per unit of volatility. If you would invest 6,841,678 in Karachi 100 on February 4, 2024 and sell it today you would earn a total of 355,504 from holding Karachi 100 or generate 5.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 94.74% |
Values | Daily Returns |
HNX 30 vs. Karachi 100
Performance |
Timeline |
HNX 30 and Karachi 100 Volatility Contrast
Predicted Return Density |
Returns |
HNX 30
Pair trading matchups for HNX 30
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with HNX 30 and Karachi 100
The main advantage of trading using opposite HNX 30 and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNX 30 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.HNX 30 vs. Hanoi Plastics JSC | HNX 30 vs. Pha Le Plastics | HNX 30 vs. Danang Education Investment | HNX 30 vs. Viet Thanh Plastic |
Karachi 100 vs. MCB Investment Manag | Karachi 100 vs. Escorts Investment Bank | Karachi 100 vs. Air Link Communication | Karachi 100 vs. Murree Brewery |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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