Correlation Between Dice Sport and Commercial International
Can any of the company-specific risk be diversified away by investing in both Dice Sport and Commercial International 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 Dice Sport and Commercial International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dice Sport Casual and Commercial International Bank Egypt, you can compare the effects of market volatilities on Dice Sport and Commercial International 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 Dice Sport with a short position of Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dice Sport and Commercial International.
Diversification Opportunities for Dice Sport and Commercial International
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dice and Commercial is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dice Sport Casual and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International and Dice Sport 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 Dice Sport Casual are associated (or correlated) with Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Dice Sport i.e., Dice Sport and Commercial International go up and down completely randomly.
Pair Corralation between Dice Sport and Commercial International
Assuming the 90 days trading horizon Dice Sport Casual is expected to generate 1.59 times more return on investment than Commercial International. However, Dice Sport is 1.59 times more volatile than Commercial International Bank Egypt. It trades about 0.14 of its potential returns per unit of risk. Commercial International Bank Egypt is currently generating about 0.05 per unit of risk. If you would invest 47.00 in Dice Sport Casual on November 1, 2024 and sell it today you would earn a total of 201.00 from holding Dice Sport Casual or generate 427.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dice Sport Casual vs. Commercial International Bank
Performance |
| Timeline |
| Dice Sport Casual |
| Commercial International |
Dice Sport and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dice Sport and Commercial International
The main advantage of trading using opposite Dice Sport and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dice Sport position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.| Dice Sport vs. Speed Medical | Dice Sport vs. Industrial Engineering Projects | Dice Sport vs. Al Arafa Investment | Dice Sport vs. Arabia Investments Holding |
| Commercial International vs. Misr Chemical Industries | Commercial International vs. AJWA for Food | Commercial International vs. Copper For Commercial | Commercial International vs. Dice Sport Casual |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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