Correlation Between Egypt Aluminum and EGX 33
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By analyzing existing cross correlation between Egypt Aluminum and EGX 33 Shariah, you can compare the effects of market volatilities on Egypt Aluminum 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 Egypt Aluminum with a short position of EGX 33. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egypt Aluminum and EGX 33.
Diversification Opportunities for Egypt Aluminum and EGX 33
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Egypt and EGX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Egypt Aluminum 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 Egypt Aluminum 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 Egypt Aluminum 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 Egypt Aluminum i.e., Egypt Aluminum and EGX 33 go up and down completely randomly.
Pair Corralation between Egypt Aluminum and EGX 33
Assuming the 90 days trading horizon Egypt Aluminum is expected to generate 2.7 times more return on investment than EGX 33. However, Egypt Aluminum is 2.7 times more volatile than EGX 33 Shariah. It trades about 0.09 of its potential returns per unit of risk. EGX 33 Shariah is currently generating about -0.11 per unit of risk. If you would invest 11,276 in Egypt Aluminum on September 14, 2024 and sell it today you would earn a total of 361.00 from holding Egypt Aluminum or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egypt Aluminum vs. EGX 33 Shariah
Performance |
| Timeline |
Egypt Aluminum and EGX 33 Volatility Contrast
Predicted Return Density |
| Returns |
Egypt Aluminum
Pair trading matchups for Egypt Aluminum
EGX 33 Shariah
Pair trading matchups for EGX 33
Pair Trading with Egypt Aluminum and EGX 33
The main advantage of trading using opposite Egypt Aluminum and EGX 33 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egypt Aluminum 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.| Egypt Aluminum vs. Paint Chemicals Industries | Egypt Aluminum vs. Reacap Financial Investments | Egypt Aluminum vs. Egyptians For Investment | Egypt Aluminum vs. Misr Oils Soap |
| EGX 33 vs. Egypt Aluminum | EGX 33 vs. Misr Oils Soap | EGX 33 vs. Gadwa For Industrial | EGX 33 vs. Arabian Food Industries |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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