Correlation Between Export Development and Elsaeed Contracting
Can any of the company-specific risk be diversified away by investing in both Export Development and Elsaeed Contracting 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 Export Development and Elsaeed Contracting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Export Development Bank and Elsaeed Contracting Real, you can compare the effects of market volatilities on Export Development and Elsaeed Contracting 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 Export Development with a short position of Elsaeed Contracting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Export Development and Elsaeed Contracting.
Diversification Opportunities for Export Development and Elsaeed Contracting
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Export and Elsaeed is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Export Development Bank and Elsaeed Contracting Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elsaeed Contracting Real and Export Development 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 Export Development Bank are associated (or correlated) with Elsaeed Contracting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elsaeed Contracting Real has no effect on the direction of Export Development i.e., Export Development and Elsaeed Contracting go up and down completely randomly.
Pair Corralation between Export Development and Elsaeed Contracting
Assuming the 90 days trading horizon Export Development is expected to generate 2.57 times less return on investment than Elsaeed Contracting. But when comparing it to its historical volatility, Export Development Bank is 2.57 times less risky than Elsaeed Contracting. It trades about 0.18 of its potential returns per unit of risk. Elsaeed Contracting Real is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 82.00 in Elsaeed Contracting Real on September 4, 2024 and sell it today you would earn a total of 13.00 from holding Elsaeed Contracting Real or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Export Development Bank vs. Elsaeed Contracting Real
Performance |
| Timeline |
| Export Development Bank |
| Elsaeed Contracting Real |
Export Development and Elsaeed Contracting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Export Development and Elsaeed Contracting
The main advantage of trading using opposite Export Development and Elsaeed Contracting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Export Development position performs unexpectedly, Elsaeed Contracting 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 Elsaeed Contracting will offset losses from the drop in Elsaeed Contracting's long position.| Export Development vs. Odin for Investment | Export Development vs. Nile City Investment | Export Development vs. Copper For Commercial | Export Development vs. Misr Chemical Industries |
| Elsaeed Contracting vs. Paint Chemicals Industries | Elsaeed Contracting vs. Egyptians For Investment | Elsaeed Contracting vs. Misr Oils Soap | Elsaeed Contracting vs. Global Telecom Holding |
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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