Correlation Between El Ahli and Iron
Can any of the company-specific risk be diversified away by investing in both El Ahli and Iron 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 Iron 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 Iron And Steel, you can compare the effects of market volatilities on El Ahli and Iron 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 Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Iron.
Diversification Opportunities for El Ahli and Iron
Weak diversification
The 3 months correlation between AFDI and Iron is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Iron And Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron And Steel 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 Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron And Steel has no effect on the direction of El Ahli i.e., El Ahli and Iron go up and down completely randomly.
Pair Corralation between El Ahli and Iron
Assuming the 90 days trading horizon El Ahli Investment is expected to under-perform the Iron. But the stock apears to be less risky and, when comparing its historical volatility, El Ahli Investment is 2.13 times less risky than Iron. The stock trades about -0.19 of its potential returns per unit of risk. The Iron And Steel is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Iron And Steel on November 29, 2024 and sell it today you would earn a total of 17.00 from holding Iron And Steel or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Ahli Investment vs. Iron And Steel
Performance |
| Timeline |
| El Ahli Investment |
| Iron And Steel |
El Ahli and Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Ahli and Iron
The main advantage of trading using opposite El Ahli and Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Iron 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 Iron will offset losses from the drop in Iron's long position.| El Ahli vs. Sidi Kerir Petrochemicals | El Ahli vs. Orascom Financial Holding | El Ahli vs. Reacap Financial Investments | El Ahli vs. Mohandes Insurance |
| Iron vs. B Investments Holding | Iron vs. Atlas For Investment | Iron vs. Edita Food Industries | Iron vs. Arab Moltaka Investments |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |