Correlation Between El Ahli and Ismailia Misr
Can any of the company-specific risk be diversified away by investing in both El Ahli and Ismailia Misr 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 Ismailia Misr 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 Ismailia Misr Poultry, you can compare the effects of market volatilities on El Ahli and Ismailia Misr 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 Ismailia Misr. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Ismailia Misr.
Diversification Opportunities for El Ahli and Ismailia Misr
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AFDI and Ismailia is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Ismailia Misr Poultry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ismailia Misr Poultry 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 Ismailia Misr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ismailia Misr Poultry has no effect on the direction of El Ahli i.e., El Ahli and Ismailia Misr go up and down completely randomly.
Pair Corralation between El Ahli and Ismailia Misr
Assuming the 90 days trading horizon El Ahli Investment is expected to generate 1.17 times more return on investment than Ismailia Misr. However, El Ahli is 1.17 times more volatile than Ismailia Misr Poultry. It trades about 0.05 of its potential returns per unit of risk. Ismailia Misr Poultry is currently generating about 0.05 per unit of risk. If you would invest 1,844 in El Ahli Investment on October 13, 2024 and sell it today you would earn a total of 1,127 from holding El Ahli Investment or generate 61.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Ahli Investment vs. Ismailia Misr Poultry
Performance |
| Timeline |
| El Ahli Investment |
| Ismailia Misr Poultry |
El Ahli and Ismailia Misr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Ahli and Ismailia Misr
The main advantage of trading using opposite El Ahli and Ismailia Misr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Ismailia Misr 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 Ismailia Misr will offset losses from the drop in Ismailia Misr's long position.| El Ahli vs. Arabia Investments Holding | El Ahli vs. Grand Investment Capital | El Ahli vs. Egyptian Transport | El Ahli vs. Al Arafa Investment |
| Ismailia Misr vs. Delta Construction Rebuilding | Ismailia Misr vs. Juhayna Food Industries | Ismailia Misr vs. Export Development Bank | Ismailia Misr vs. Paint Chemicals Industries |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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