Correlation Between Egyptian Financial and Sidi Kerir
Can any of the company-specific risk be diversified away by investing in both Egyptian Financial and Sidi Kerir 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 Egyptian Financial and Sidi Kerir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptian Financial Industrial and Sidi Kerir Petrochemicals, you can compare the effects of market volatilities on Egyptian Financial and Sidi Kerir 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 Egyptian Financial with a short position of Sidi Kerir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptian Financial and Sidi Kerir.
Diversification Opportunities for Egyptian Financial and Sidi Kerir
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Egyptian and Sidi is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Egyptian Financial Industrial and Sidi Kerir Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidi Kerir Petrochemicals and Egyptian Financial 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 Egyptian Financial Industrial are associated (or correlated) with Sidi Kerir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidi Kerir Petrochemicals has no effect on the direction of Egyptian Financial i.e., Egyptian Financial and Sidi Kerir go up and down completely randomly.
Pair Corralation between Egyptian Financial and Sidi Kerir
Assuming the 90 days trading horizon Egyptian Financial is expected to generate 1.19 times less return on investment than Sidi Kerir. But when comparing it to its historical volatility, Egyptian Financial Industrial is 1.27 times less risky than Sidi Kerir. It trades about 0.19 of its potential returns per unit of risk. Sidi Kerir Petrochemicals is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,903 in Sidi Kerir Petrochemicals on October 24, 2024 and sell it today you would earn a total of 140.00 from holding Sidi Kerir Petrochemicals or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egyptian Financial Industrial vs. Sidi Kerir Petrochemicals
Performance |
| Timeline |
| Egyptian Financial |
| Sidi Kerir Petrochemicals |
Egyptian Financial and Sidi Kerir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptian Financial and Sidi Kerir
The main advantage of trading using opposite Egyptian Financial and Sidi Kerir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptian Financial position performs unexpectedly, Sidi Kerir 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 Sidi Kerir will offset losses from the drop in Sidi Kerir's long position.| Egyptian Financial vs. ODIN Investments | Egyptian Financial vs. Alexandria New Medical | Egyptian Financial vs. Nozha International Hospital | Egyptian Financial vs. Delta Construction Rebuilding |
| Sidi Kerir vs. Grand Investment Capital | Sidi Kerir vs. ODIN Investments | Sidi Kerir vs. Egyptian Financial Industrial | Sidi Kerir vs. Gadwa For Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| 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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |