Bank Alfalah Correlations

BAFL Stock

67.54 0.86 1.29%

The current 90-days correlation between Bank Alfalah and Pakistan Synthetics is -0.12 (i.e., Good diversification). The correlation of Bank Alfalah 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.

Bank Alfalah Correlation With Market

Significant diversification

The correlation between Bank Alfalah and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bank Alfalah and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Bank Alfalah could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank Alfalah 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 Bank Alfalah - 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 Bank Alfalah to buy it.

Moving together with Bank Stock

0.73	HBL	Habib Bank	Pair Corr
0.71	NBP	National Bank	Pair Corr
0.88	UBL	United Bank	Pair Corr
0.91	MCB	MCB Bank	Pair Corr
0.75	ABL	Allied Bank	Pair Corr
0.92	BAHL	Bank Al Habib	Pair Corr
0.84	AKBL	Askari Bank	Pair Corr
0.87	HMB	Habib Metropolitan Bank	Pair Corr

Related Correlations Analysis

	PSYL	CENI	ATIL	RICL	JLICL	PTC	ORM	AIRLINK
PSYL		-0.82	-0.5	-0.79	-0.39	-0.59	-0.88	-0.17	PSYL
CENI	-0.82		0.81	0.84	0.52	0.79	0.85	0.12	CENI
ATIL	-0.5	0.81		0.58	0.57	0.76	0.69	-0.2	ATIL
RICL	-0.79	0.84	0.58		0.26	0.5	0.73	0.1	RICL
JLICL	-0.39	0.52	0.57	0.26		0.84	0.57	-0.04	JLICL
PTC	-0.59	0.79	0.76	0.5	0.84		0.75	0.06	PTC
ORM	-0.88	0.85	0.69	0.73	0.57	0.75		-0.01	ORM
AIRLINK	-0.17	0.12	-0.2	0.1	-0.04	0.06	-0.01		AIRLINK
	PSYL	CENI	ATIL	RICL	JLICL	PTC	ORM	AIRLINK

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ORM	+ 0.85	CENI
RICL	+ 0.84	CENI
PTC	+ 0.84	JLICL
ATIL	+ 0.81	CENI
PTC	+ 0.79	CENI
PTC	+ 0.76	ATIL

High negative correlations

ORM	- 0.88	PSYL
CENI	- 0.82	PSYL
RICL	- 0.79	PSYL
PTC	- 0.59	PSYL
ATIL	- 0.5	PSYL
JLICL	- 0.39	PSYL

Risk-Adjusted Indicators

There is a big difference between Bank Stock performing well and Bank Alfalah 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 Bank Alfalah'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
PSYL	2.32	(0.41)	0.00	(1.65)	0.00	0.00	5.56	(4.32)	17.01
CENI	1.68	0.52	0.14	(2.09)	1.49	(2.46)	4.72	(3.14)	10.74
ATIL	1.13	0.32	0.09	(1.49)	0.93	(1.39)	3.71	(2.19)	7.31
RICL	3.01	0.38	0.05	(3.58)	3.34	(3.79)	7.33	(5.31)	20.15
JLICL	1.22	0.11	(0.06)	(0.21)	1.28	(1.46)	3.21	(2.18)	7.20
PTC	2.69	0.46	0.15	2.08	1.93	(3.64)	8.55	(3.57)	14.18
ORM	1.51	0.30	0.10	0.54	1.45	(2.19)	3.37	(3.41)	20.17
AIRLINK	2.29	0.35	0.06	(1.36)	2.22	(2.75)	6.88	(3.64)	16.25

Be your own money manager

Our tools can tell you how much better you can do entering a position in Bank Alfalah without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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