Correlation Between Egyptian Transport and Grand Investment
Can any of the company-specific risk be diversified away by investing in both Egyptian Transport and Grand Investment 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 Transport and Grand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptian Transport and Grand Investment Capital, you can compare the effects of market volatilities on Egyptian Transport and Grand Investment 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 Transport with a short position of Grand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptian Transport and Grand Investment.
Diversification Opportunities for Egyptian Transport and Grand Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Egyptian and Grand is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Egyptian Transport and Grand Investment Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Investment Capital and Egyptian Transport 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 Transport are associated (or correlated) with Grand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Investment Capital has no effect on the direction of Egyptian Transport i.e., Egyptian Transport and Grand Investment go up and down completely randomly.
Pair Corralation between Egyptian Transport and Grand Investment
Assuming the 90 days trading horizon Egyptian Transport is expected to under-perform the Grand Investment. In addition to that, Egyptian Transport is 1.28 times more volatile than Grand Investment Capital. It trades about -0.15 of its total potential returns per unit of risk. Grand Investment Capital is currently generating about 0.41 per unit of volatility. If you would invest 946.00 in Grand Investment Capital on October 12, 2024 and sell it today you would earn a total of 191.00 from holding Grand Investment Capital or generate 20.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egyptian Transport vs. Grand Investment Capital
Performance |
| Timeline |
| Egyptian Transport |
| Grand Investment Capital |
Egyptian Transport and Grand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptian Transport and Grand Investment
The main advantage of trading using opposite Egyptian Transport and Grand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptian Transport position performs unexpectedly, Grand Investment 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 Grand Investment will offset losses from the drop in Grand Investment's long position.| Egyptian Transport vs. El Ahli Investment | Egyptian Transport vs. B Investments Holding | Egyptian Transport vs. Digitize for Investment | Egyptian Transport vs. Paint Chemicals Industries |
| Grand Investment vs. Egyptian Transport | Grand Investment vs. Egyptian Iron Steel | Grand Investment vs. Contact Financial Holding | Grand Investment vs. Al Baraka 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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