Correlation Between QALA For and El Ahli
Can any of the company-specific risk be diversified away by investing in both QALA For and El Ahli 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 QALA For and El Ahli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QALA For Financial and El Ahli Investment, you can compare the effects of market volatilities on QALA For and El Ahli 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 QALA For with a short position of El Ahli. Check out your portfolio center. Please also check ongoing floating volatility patterns of QALA For and El Ahli.
Diversification Opportunities for QALA For and El Ahli
Good diversification
The 3 months correlation between QALA and AFDI is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding QALA For Financial and El Ahli Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Ahli Investment and QALA 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 QALA For Financial are associated (or correlated) with El Ahli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Ahli Investment has no effect on the direction of QALA For i.e., QALA For and El Ahli go up and down completely randomly.
Pair Corralation between QALA For and El Ahli
Assuming the 90 days trading horizon QALA For Financial is expected to generate 1.79 times more return on investment than El Ahli. However, QALA For is 1.79 times more volatile than El Ahli Investment. It trades about 0.28 of its potential returns per unit of risk. El Ahli Investment is currently generating about -0.14 per unit of risk. If you would invest 239.00 in QALA For Financial on November 4, 2024 and sell it today you would earn a total of 34.00 from holding QALA For Financial or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QALA For Financial vs. El Ahli Investment
Performance |
| Timeline |
| QALA For Financial |
| El Ahli Investment |
QALA For and El Ahli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QALA For and El Ahli
The main advantage of trading using opposite QALA For and El Ahli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QALA For position performs unexpectedly, El Ahli 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 El Ahli will offset losses from the drop in El Ahli's long position.| QALA For vs. Iron And Steel | QALA For vs. Nile City Investment | QALA For vs. Arab Moltaka Investments | QALA For vs. Golden Textiles Clothes |
| El Ahli vs. Paint Chemicals Industries | El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli vs. Misr Oils Soap |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |