Correlation Between A Capital and Sharkia National
Can any of the company-specific risk be diversified away by investing in both A Capital and Sharkia National 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 A Capital and Sharkia National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Capital Holding and Sharkia National Food, you can compare the effects of market volatilities on A Capital and Sharkia National 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 A Capital with a short position of Sharkia National. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Capital and Sharkia National.
Diversification Opportunities for A Capital and Sharkia National
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ACAP and Sharkia is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding A Capital Holding and Sharkia National Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharkia National Food and A Capital 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 A Capital Holding are associated (or correlated) with Sharkia National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharkia National Food has no effect on the direction of A Capital i.e., A Capital and Sharkia National go up and down completely randomly.
Pair Corralation between A Capital and Sharkia National
Assuming the 90 days trading horizon A Capital is expected to generate 14.12 times less return on investment than Sharkia National. But when comparing it to its historical volatility, A Capital Holding is 2.32 times less risky than Sharkia National. It trades about 0.09 of its potential returns per unit of risk. Sharkia National Food is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Sharkia National Food on September 4, 2024 and sell it today you would earn a total of 161.00 from holding Sharkia National Food or generate 49.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Capital Holding vs. Sharkia National Food
Performance |
| Timeline |
| A Capital Holding |
| Sharkia National Food |
A Capital and Sharkia National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Capital and Sharkia National
The main advantage of trading using opposite A Capital and Sharkia National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Capital position performs unexpectedly, Sharkia National 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 Sharkia National will offset losses from the drop in Sharkia National's long position.| A Capital vs. Atlas For Investment | A Capital vs. Iron And Steel | A Capital vs. Arab Aluminum | A Capital vs. Ezz Steel |
| Sharkia National vs. Atlas For Investment | Sharkia National vs. ODIN Investments | Sharkia National vs. Paint Chemicals Industries | Sharkia National vs. Nile City Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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