Correlation Between El Ahli and EGX 33
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By analyzing existing cross correlation between El Ahli Investment and EGX 33 Shariah, you can compare the effects of market volatilities on El Ahli and EGX 33 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 EGX 33. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and EGX 33.
Diversification Opportunities for El Ahli and EGX 33
Poor diversification
The 3 months correlation between AFDI and EGX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and EGX 33 Shariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGX 33 Shariah 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 EGX 33. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGX 33 Shariah has no effect on the direction of El Ahli i.e., El Ahli and EGX 33 go up and down completely randomly.
Pair Corralation between El Ahli and EGX 33
Assuming the 90 days trading horizon El Ahli Investment is expected to under-perform the EGX 33. In addition to that, El Ahli is 1.84 times more volatile than EGX 33 Shariah. It trades about -0.33 of its total potential returns per unit of risk. EGX 33 Shariah is currently generating about -0.22 per unit of volatility. If you would invest 327,907 in EGX 33 Shariah on September 12, 2024 and sell it today you would lose (10,672) from holding EGX 33 Shariah or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Ahli Investment vs. EGX 33 Shariah
Performance |
| Timeline |
El Ahli and EGX 33 Volatility Contrast
Predicted Return Density |
| Returns |
El Ahli Investment
Pair trading matchups for El Ahli
EGX 33 Shariah
Pair trading matchups for EGX 33
Pair Trading with El Ahli and EGX 33
The main advantage of trading using opposite El Ahli and EGX 33 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, EGX 33 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 EGX 33 will offset losses from the drop in EGX 33's long position.| El Ahli vs. Paint Chemicals Industries | El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli vs. Misr Oils Soap |
| EGX 33 vs. Egyptian Transport | EGX 33 vs. Mohandes Insurance | EGX 33 vs. Dice Sport Casual | EGX 33 vs. Cleopatra Hospital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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