Correlation Between Egyptian Transport and Industrial Engineering
Can any of the company-specific risk be diversified away by investing in both Egyptian Transport and Industrial Engineering 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 Industrial Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptian Transport and Industrial Engineering Projects, you can compare the effects of market volatilities on Egyptian Transport and Industrial Engineering 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 Industrial Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptian Transport and Industrial Engineering.
Diversification Opportunities for Egyptian Transport and Industrial Engineering
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Egyptian and Industrial is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Egyptian Transport and Industrial Engineering Project in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Engineering 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 Industrial Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Engineering has no effect on the direction of Egyptian Transport i.e., Egyptian Transport and Industrial Engineering go up and down completely randomly.
Pair Corralation between Egyptian Transport and Industrial Engineering
Assuming the 90 days trading horizon Egyptian Transport is expected to generate 1.03 times more return on investment than Industrial Engineering. However, Egyptian Transport is 1.03 times more volatile than Industrial Engineering Projects. It trades about 0.07 of its potential returns per unit of risk. Industrial Engineering Projects is currently generating about 0.05 per unit of risk. If you would invest 231.00 in Egyptian Transport on December 2, 2024 and sell it today you would earn a total of 259.00 from holding Egyptian Transport or generate 112.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.67% |
| Values | Daily Returns |
Egyptian Transport vs. Industrial Engineering Project
Performance |
| Timeline |
| Egyptian Transport |
| Industrial Engineering |
Egyptian Transport and Industrial Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptian Transport and Industrial Engineering
The main advantage of trading using opposite Egyptian Transport and Industrial Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptian Transport position performs unexpectedly, Industrial Engineering 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 Industrial Engineering will offset losses from the drop in Industrial Engineering's long position.| Egyptian Transport vs. Atlas For Investment | Egyptian Transport vs. Egyptian Gulf Bank | Egyptian Transport vs. Act Financial | Egyptian Transport vs. QALA For Financial |
| Industrial Engineering vs. Atlas For Investment | Industrial Engineering vs. Digitize for Investment | Industrial Engineering vs. Misr Hotels | Industrial Engineering vs. Cairo For Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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