Correlation Between Arab Moltaka and EGX 33
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By analyzing existing cross correlation between Arab Moltaka Investments and EGX 33 Shariah, you can compare the effects of market volatilities on Arab Moltaka 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 Arab Moltaka with a short position of EGX 33. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arab Moltaka and EGX 33.
Diversification Opportunities for Arab Moltaka and EGX 33
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arab and EGX is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Arab Moltaka Investments 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 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 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 Arab Moltaka i.e., Arab Moltaka and EGX 33 go up and down completely randomly.
Pair Corralation between Arab Moltaka and EGX 33
Assuming the 90 days trading horizon Arab Moltaka Investments is expected to generate 3.12 times more return on investment than EGX 33. However, Arab Moltaka is 3.12 times more volatile than EGX 33 Shariah. It trades about -0.03 of its potential returns per unit of risk. EGX 33 Shariah is currently generating about -0.11 per unit of risk. If you would invest 277.00 in Arab Moltaka Investments on September 14, 2024 and sell it today you would lose (5.00) from holding Arab Moltaka Investments or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arab Moltaka Investments vs. EGX 33 Shariah
Performance |
| Timeline |
Arab Moltaka and EGX 33 Volatility Contrast
Predicted Return Density |
| Returns |
Arab Moltaka Investments
Pair trading matchups for Arab Moltaka
EGX 33 Shariah
Pair trading matchups for EGX 33
Pair Trading with Arab Moltaka and EGX 33
The main advantage of trading using opposite Arab Moltaka and EGX 33 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arab Moltaka 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.| Arab Moltaka vs. Paint Chemicals Industries | Arab Moltaka vs. Reacap Financial Investments | Arab Moltaka vs. Egyptians For Investment | Arab Moltaka vs. Misr Oils Soap |
| EGX 33 vs. Egypt Aluminum | EGX 33 vs. Misr Oils Soap | EGX 33 vs. Gadwa For Industrial | EGX 33 vs. Arabian Food 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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