Correlation Between EBay and Egyptian Financial
Can any of the company-specific risk be diversified away by investing in both EBay and Egyptian Financial 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 EBay and Egyptian Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eBay Inc and Egyptian Financial Industrial, you can compare the effects of market volatilities on EBay and Egyptian Financial 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 EBay with a short position of Egyptian Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBay and Egyptian Financial.
Diversification Opportunities for EBay and Egyptian Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EBay and Egyptian is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding eBay Inc and Egyptian Financial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptian Financial and EBay 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 eBay Inc are associated (or correlated) with Egyptian Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptian Financial has no effect on the direction of EBay i.e., EBay and Egyptian Financial go up and down completely randomly.
Pair Corralation between EBay and Egyptian Financial
Given the investment horizon of 90 days eBay Inc is expected to under-perform the Egyptian Financial. In addition to that, EBay is 2.19 times more volatile than Egyptian Financial Industrial. It trades about -0.08 of its total potential returns per unit of risk. Egyptian Financial Industrial is currently generating about 0.22 per unit of volatility. If you would invest 14,636 in Egyptian Financial Industrial on December 15, 2024 and sell it today you would earn a total of 697.00 from holding Egyptian Financial Industrial or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
eBay Inc vs. Egyptian Financial Industrial
Performance |
| Timeline |
| eBay Inc |
| Egyptian Financial |
EBay and Egyptian Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBay and Egyptian Financial
The main advantage of trading using opposite EBay and Egyptian Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBay position performs unexpectedly, Egyptian Financial 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 Egyptian Financial will offset losses from the drop in Egyptian Financial's long position.The idea behind eBay Inc and Egyptian Financial Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Egyptian Financial vs. Saudi Egyptian Investment | ||
| Egyptian Financial vs. Act Financial | ||
| Egyptian Financial vs. Assiut Islamic Trading | ||
| Egyptian Financial vs. Qatar Natl Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |
Recommendations on macroaxis.com are based on what is currently trending. Macroaxis LLC is not a registered investment advisor or broker/dealer.
The information on the site should be used for informational purposes only and is not investment advice.
more