Correlation Between El Ahli and Delta For
Can any of the company-specific risk be diversified away by investing in both El Ahli and Delta For 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 El Ahli and Delta For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Ahli Investment and Delta For Printing, you can compare the effects of market volatilities on El Ahli and Delta For 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 El Ahli with a short position of Delta For. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Delta For.
Diversification Opportunities for El Ahli and Delta For
Good diversification
The 3 months correlation between AFDI and Delta is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Delta For Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta For Printing and El Ahli 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 El Ahli Investment are associated (or correlated) with Delta For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta For Printing has no effect on the direction of El Ahli i.e., El Ahli and Delta For go up and down completely randomly.
Pair Corralation between El Ahli and Delta For
Assuming the 90 days trading horizon El Ahli is expected to generate 8.31 times less return on investment than Delta For. But when comparing it to its historical volatility, El Ahli Investment is 1.09 times less risky than Delta For. It trades about 0.02 of its potential returns per unit of risk. Delta For Printing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,793 in Delta For Printing on September 3, 2024 and sell it today you would earn a total of 4,485 from holding Delta For Printing or generate 118.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Ahli Investment vs. Delta For Printing
Performance |
| Timeline |
| El Ahli Investment |
| Delta For Printing |
El Ahli and Delta For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Ahli and Delta For
The main advantage of trading using opposite El Ahli and Delta For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Delta For 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 Delta For will offset losses from the drop in Delta For's long position.| El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli vs. Contact Financial Holding | El Ahli vs. Zahraa Maadi Investment |
| Delta For vs. Nozha International Hospital | Delta For vs. Telecom Egypt | Delta For vs. Saudi Egyptian Investment | Delta For vs. Misr Hotels |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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