Correlation Between Egyptians For and A Capital
Can any of the company-specific risk be diversified away by investing in both Egyptians For and A Capital 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 Egyptians For and A Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptians For Investment and A Capital Holding, you can compare the effects of market volatilities on Egyptians For and A Capital 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 Egyptians For with a short position of A Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptians For and A Capital.
Diversification Opportunities for Egyptians For and A Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Egyptians and ACAP is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Egyptians For Investment and A Capital Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Capital Holding and Egyptians 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 Egyptians For Investment are associated (or correlated) with A Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Capital Holding has no effect on the direction of Egyptians For i.e., Egyptians For and A Capital go up and down completely randomly.
Pair Corralation between Egyptians For and A Capital
Assuming the 90 days trading horizon Egyptians For is expected to generate 1.01 times less return on investment than A Capital. In addition to that, Egyptians For is 1.25 times more volatile than A Capital Holding. It trades about 0.17 of its total potential returns per unit of risk. A Capital Holding is currently generating about 0.21 per unit of volatility. If you would invest 256.00 in A Capital Holding on September 12, 2024 and sell it today you would earn a total of 26.00 from holding A Capital Holding or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Egyptians For Investment vs. A Capital Holding
Performance |
| Timeline |
| Egyptians For Investment |
| A Capital Holding |
Egyptians For and A Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptians For and A Capital
The main advantage of trading using opposite Egyptians For and A Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptians For position performs unexpectedly, A Capital 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 A Capital will offset losses from the drop in A Capital's long position.| Egyptians For vs. Commercial International Bank Egypt | Egyptians For vs. Suez Canal Bank | Egyptians For vs. Arab Moltaka Investments | Egyptians For vs. Mohandes Insurance |
| A Capital vs. Paint Chemicals Industries | A Capital vs. Reacap Financial Investments | A Capital vs. Egyptians For Investment | A Capital 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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