Correlation Between B Investments and Gadwa For
Can any of the company-specific risk be diversified away by investing in both B Investments and Gadwa For 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 B Investments and Gadwa For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Investments Holding and Gadwa For Industrial, you can compare the effects of market volatilities on B Investments and Gadwa For 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 B Investments with a short position of Gadwa For. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Investments and Gadwa For.
Diversification Opportunities for B Investments and Gadwa For
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BINV and Gadwa is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding B Investments Holding and Gadwa For Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gadwa For Industrial and B Investments 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 B Investments Holding are associated (or correlated) with Gadwa For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gadwa For Industrial has no effect on the direction of B Investments i.e., B Investments and Gadwa For go up and down completely randomly.
Pair Corralation between B Investments and Gadwa For
Assuming the 90 days trading horizon B Investments Holding is expected to generate 0.91 times more return on investment than Gadwa For. However, B Investments Holding is 1.1 times less risky than Gadwa For. It trades about 0.12 of its potential returns per unit of risk. Gadwa For Industrial is currently generating about 0.1 per unit of risk. If you would invest 1,717 in B Investments Holding on September 3, 2024 and sell it today you would earn a total of 783.00 from holding B Investments Holding or generate 45.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Investments Holding vs. Gadwa For Industrial
Performance |
| Timeline |
| B Investments Holding |
| Gadwa For Industrial |
B Investments and Gadwa For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Investments and Gadwa For
The main advantage of trading using opposite B Investments and Gadwa For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Investments position performs unexpectedly, Gadwa For 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 Gadwa For will offset losses from the drop in Gadwa For's long position.| B Investments vs. Paint Chemicals Industries | B Investments vs. Egyptians For Investment | B Investments vs. Misr Oils Soap | B Investments vs. Global Telecom Holding |
| Gadwa For vs. Paint Chemicals Industries | Gadwa For vs. Egyptians For Investment | Gadwa For vs. Misr Oils Soap | Gadwa For vs. Global Telecom Holding |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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