Correlation Between Atlas For and Misr Hotels
Can any of the company-specific risk be diversified away by investing in both Atlas For and Misr Hotels 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 Atlas For and Misr Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas For Investment and Misr Hotels, you can compare the effects of market volatilities on Atlas For and Misr Hotels 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 Atlas For with a short position of Misr Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas For and Misr Hotels.
Diversification Opportunities for Atlas For and Misr Hotels
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and Misr is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Atlas For Investment and Misr Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Misr Hotels and Atlas For 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 Atlas For Investment are associated (or correlated) with Misr Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Misr Hotels has no effect on the direction of Atlas For i.e., Atlas For and Misr Hotels go up and down completely randomly.
Pair Corralation between Atlas For and Misr Hotels
Assuming the 90 days trading horizon Atlas For Investment is expected to generate 0.57 times more return on investment than Misr Hotels. However, Atlas For Investment is 1.76 times less risky than Misr Hotels. It trades about 0.13 of its potential returns per unit of risk. Misr Hotels is currently generating about 0.0 per unit of risk. If you would invest 24.00 in Atlas For Investment on September 2, 2024 and sell it today you would earn a total of 59.00 from holding Atlas For Investment or generate 245.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.92% |
| Values | Daily Returns |
Atlas For Investment vs. Misr Hotels
Performance |
| Timeline |
| Atlas For Investment |
| Misr Hotels |
Atlas For and Misr Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas For and Misr Hotels
The main advantage of trading using opposite Atlas For and Misr Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas For position performs unexpectedly, Misr Hotels 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 Misr Hotels will offset losses from the drop in Misr Hotels' long position.| Atlas For vs. Egyptians For Investment | Atlas For vs. Misr Oils Soap | Atlas For vs. Global Telecom Holding | Atlas For vs. Qatar Natl Bank |
| Misr Hotels vs. Egyptians For Investment | Misr Hotels vs. Misr Oils Soap | Misr Hotels vs. Global Telecom Holding | Misr Hotels vs. Qatar Natl Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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