Correlation Between Alexandria New and B Investments
Can any of the company-specific risk be diversified away by investing in both Alexandria New and B Investments 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 Alexandria New and B Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexandria New Medical and B Investments Holding, you can compare the effects of market volatilities on Alexandria New and B Investments 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 Alexandria New with a short position of B Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexandria New and B Investments.
Diversification Opportunities for Alexandria New and B Investments
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alexandria and BINV is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria New Medical and B Investments Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Investments Holding and Alexandria New 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 Alexandria New Medical are associated (or correlated) with B Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Investments Holding has no effect on the direction of Alexandria New i.e., Alexandria New and B Investments go up and down completely randomly.
Pair Corralation between Alexandria New and B Investments
Assuming the 90 days trading horizon Alexandria New Medical is expected to under-perform the B Investments. In addition to that, Alexandria New is 1.03 times more volatile than B Investments Holding. It trades about -0.12 of its total potential returns per unit of risk. B Investments Holding is currently generating about -0.12 per unit of volatility. If you would invest 2,484 in B Investments Holding on November 4, 2024 and sell it today you would lose (84.00) from holding B Investments Holding or give up 3.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alexandria New Medical vs. B Investments Holding
Performance |
| Timeline |
| Alexandria New Medical |
| B Investments Holding |
Alexandria New and B Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexandria New and B Investments
The main advantage of trading using opposite Alexandria New and B Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria New position performs unexpectedly, B Investments 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 B Investments will offset losses from the drop in B Investments' long position.| Alexandria New vs. Al Arafa Investment | Alexandria New vs. Paint Chemicals Industries | Alexandria New vs. Misr Chemical Industries | Alexandria New vs. Egyptian Chemical Industries |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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