Correlation Between El Ahli and Egyptians For
Can any of the company-specific risk be diversified away by investing in both El Ahli and Egyptians 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 Egyptians 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 Egyptians For Investment, you can compare the effects of market volatilities on El Ahli and Egyptians 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 Egyptians For. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Egyptians For.
Diversification Opportunities for El Ahli and Egyptians For
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AFDI and Egyptians is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Egyptians For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptians For Investment 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 Egyptians For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptians For Investment has no effect on the direction of El Ahli i.e., El Ahli and Egyptians For go up and down completely randomly.
Pair Corralation between El Ahli and Egyptians For
Assuming the 90 days trading horizon El Ahli Investment is expected to generate 0.85 times more return on investment than Egyptians For. However, El Ahli Investment is 1.18 times less risky than Egyptians For. It trades about 0.01 of its potential returns per unit of risk. Egyptians For Investment is currently generating about -0.05 per unit of risk. If you would invest 3,561 in El Ahli Investment on September 2, 2024 and sell it today you would lose (438.00) from holding El Ahli Investment or give up 12.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Ahli Investment vs. Egyptians For Investment
Performance |
| Timeline |
| El Ahli Investment |
| Egyptians For Investment |
El Ahli and Egyptians For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Ahli and Egyptians For
The main advantage of trading using opposite El Ahli and Egyptians For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Egyptians 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 Egyptians For will offset losses from the drop in Egyptians For's long position.| El Ahli vs. Egyptians For Investment | El Ahli vs. Misr Oils Soap | El Ahli vs. Global Telecom Holding | El Ahli vs. Qatar Natl Bank |
| Egyptians For vs. Saudi Egyptian Investment | Egyptians For vs. B Investments Holding | Egyptians For vs. ODIN Investments | Egyptians For vs. Odin for 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |