Correlation Between Arab Moltaka and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Arab Moltaka and Credit Agricole 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 Arab Moltaka and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arab Moltaka Investments and Credit Agricole Egypt, you can compare the effects of market volatilities on Arab Moltaka and Credit Agricole 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 Arab Moltaka with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arab Moltaka and Credit Agricole.
Diversification Opportunities for Arab Moltaka and Credit Agricole
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arab and Credit is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Arab Moltaka Investments and Credit Agricole Egypt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole Egypt and Arab Moltaka 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 Arab Moltaka Investments are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole Egypt has no effect on the direction of Arab Moltaka i.e., Arab Moltaka and Credit Agricole go up and down completely randomly.
Pair Corralation between Arab Moltaka and Credit Agricole
Assuming the 90 days trading horizon Arab Moltaka Investments is expected to generate 1.44 times more return on investment than Credit Agricole. However, Arab Moltaka is 1.44 times more volatile than Credit Agricole Egypt. It trades about 0.07 of its potential returns per unit of risk. Credit Agricole Egypt is currently generating about 0.02 per unit of risk. If you would invest 178.00 in Arab Moltaka Investments on September 3, 2024 and sell it today you would earn a total of 93.00 from holding Arab Moltaka Investments or generate 52.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arab Moltaka Investments vs. Credit Agricole Egypt
Performance |
| Timeline |
| Arab Moltaka Investments |
| Credit Agricole Egypt |
Arab Moltaka and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arab Moltaka and Credit Agricole
The main advantage of trading using opposite Arab Moltaka and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arab Moltaka position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.| Arab Moltaka vs. Paint Chemicals Industries | Arab Moltaka vs. Egyptians For Investment | Arab Moltaka vs. Misr Oils Soap | Arab Moltaka vs. Global Telecom Holding |
| Credit Agricole vs. Paint Chemicals Industries | Credit Agricole vs. Egyptians For Investment | Credit Agricole vs. Misr Oils Soap | Credit Agricole vs. Global Telecom Holding |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |