Correlation Between Growth Fund and Egyptian Gulf
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Egyptian Gulf 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 Growth Fund and Egyptian Gulf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Egyptian Gulf Bank, you can compare the effects of market volatilities on Growth Fund and Egyptian Gulf 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 Growth Fund with a short position of Egyptian Gulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Egyptian Gulf.
Diversification Opportunities for Growth Fund and Egyptian Gulf
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Growth and Egyptian is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Egyptian Gulf Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptian Gulf Bank and Growth Fund 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 Growth Fund Of are associated (or correlated) with Egyptian Gulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptian Gulf Bank has no effect on the direction of Growth Fund i.e., Growth Fund and Egyptian Gulf go up and down completely randomly.
Pair Corralation between Growth Fund and Egyptian Gulf
If you would invest 7,594 in Growth Fund Of on October 23, 2024 and sell it today you would earn a total of 104.00 from holding Growth Fund Of or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
Growth Fund Of vs. Egyptian Gulf Bank
Performance |
| Timeline |
| Growth Fund |
| Egyptian Gulf Bank |
Growth Fund and Egyptian Gulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Egyptian Gulf
The main advantage of trading using opposite Growth Fund and Egyptian Gulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Egyptian Gulf 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 Egyptian Gulf will offset losses from the drop in Egyptian Gulf's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| Egyptian Gulf vs. Export Development Bank | Egyptian Gulf vs. Faisal Islamic Bank | Egyptian Gulf vs. Reacap Financial Investments | Egyptian Gulf vs. Sidi Kerir Petrochemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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