Correlation Between Alexandria New and Sidi Kerir
Can any of the company-specific risk be diversified away by investing in both Alexandria New and Sidi Kerir 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 Sidi Kerir 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 Sidi Kerir Petrochemicals, you can compare the effects of market volatilities on Alexandria New and Sidi Kerir 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 Sidi Kerir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexandria New and Sidi Kerir.
Diversification Opportunities for Alexandria New and Sidi Kerir
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alexandria and Sidi is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Alexandria New Medical and Sidi Kerir Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidi Kerir Petrochemicals 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 Sidi Kerir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidi Kerir Petrochemicals has no effect on the direction of Alexandria New i.e., Alexandria New and Sidi Kerir go up and down completely randomly.
Pair Corralation between Alexandria New and Sidi Kerir
Assuming the 90 days trading horizon Alexandria New Medical is expected to under-perform the Sidi Kerir. But the stock apears to be less risky and, when comparing its historical volatility, Alexandria New Medical is 1.81 times less risky than Sidi Kerir. The stock trades about -0.21 of its potential returns per unit of risk. The Sidi Kerir Petrochemicals is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,030 in Sidi Kerir Petrochemicals on October 11, 2024 and sell it today you would lose (91.00) from holding Sidi Kerir Petrochemicals or give up 4.48% 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. Sidi Kerir Petrochemicals
Performance |
| Timeline |
| Alexandria New Medical |
| Sidi Kerir Petrochemicals |
Alexandria New and Sidi Kerir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexandria New and Sidi Kerir
The main advantage of trading using opposite Alexandria New and Sidi Kerir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexandria New position performs unexpectedly, Sidi Kerir 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 Sidi Kerir will offset losses from the drop in Sidi Kerir's long position.| Alexandria New vs. Sidi Kerir Petrochemicals | Alexandria New vs. Digitize for Investment | Alexandria New vs. Egyptian Chemical Industries | Alexandria New vs. Reacap Financial Investments |
| Sidi Kerir vs. Commercial International Bank Egypt | Sidi Kerir vs. QALA For Financial | Sidi Kerir vs. Mohandes Insurance | Sidi Kerir vs. Medical Packaging |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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