Correlation Between B Investments and EGX 33
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By analyzing existing cross correlation between B Investments Holding and EGX 33 Shariah, you can compare the effects of market volatilities on B Investments and EGX 33 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 EGX 33. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Investments and EGX 33.
Diversification Opportunities for B Investments and EGX 33
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BINV and EGX is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding B Investments Holding and EGX 33 Shariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGX 33 Shariah 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 EGX 33. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGX 33 Shariah has no effect on the direction of B Investments i.e., B Investments and EGX 33 go up and down completely randomly.
Pair Corralation between B Investments and EGX 33
Assuming the 90 days trading horizon B Investments Holding is expected to under-perform the EGX 33. In addition to that, B Investments is 1.5 times more volatile than EGX 33 Shariah. It trades about -0.1 of its total potential returns per unit of risk. EGX 33 Shariah is currently generating about 0.02 per unit of volatility. If you would invest 312,916 in EGX 33 Shariah on September 24, 2024 and sell it today you would earn a total of 502.00 from holding EGX 33 Shariah or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Investments Holding vs. EGX 33 Shariah
Performance |
| Timeline |
B Investments and EGX 33 Volatility Contrast
Predicted Return Density |
| Returns |
B Investments Holding
Pair trading matchups for B Investments
EGX 33 Shariah
Pair trading matchups for EGX 33
Pair Trading with B Investments and EGX 33
The main advantage of trading using opposite B Investments and EGX 33 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Investments position performs unexpectedly, EGX 33 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 EGX 33 will offset losses from the drop in EGX 33's long position.| B Investments vs. Memphis Pharmaceuticals | B Investments vs. Paint Chemicals Industries | B Investments vs. Egyptians For Investment | B Investments vs. Global Telecom Holding |
| EGX 33 vs. Saudi Egyptian Investment | EGX 33 vs. B Investments Holding | EGX 33 vs. Cairo For Investment | EGX 33 vs. Arab Moltaka Investments |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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