Correlation Between Faisal Islamic and Atlas For
Can any of the company-specific risk be diversified away by investing in both Faisal Islamic and Atlas For 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 Faisal Islamic and Atlas For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Faisal Islamic Bank and Atlas For Investment, you can compare the effects of market volatilities on Faisal Islamic and Atlas For 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 Faisal Islamic with a short position of Atlas For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faisal Islamic and Atlas For.
Diversification Opportunities for Faisal Islamic and Atlas For
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Faisal and Atlas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Faisal Islamic Bank and Atlas For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas For Investment and Faisal Islamic 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 Faisal Islamic Bank are associated (or correlated) with Atlas For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas For Investment has no effect on the direction of Faisal Islamic i.e., Faisal Islamic and Atlas For go up and down completely randomly.
Pair Corralation between Faisal Islamic and Atlas For
Assuming the 90 days trading horizon Faisal Islamic Bank is expected to under-perform the Atlas For. But the stock apears to be less risky and, when comparing its historical volatility, Faisal Islamic Bank is 1.5 times less risky than Atlas For. The stock trades about -0.14 of its potential returns per unit of risk. The Atlas For Investment is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Atlas For Investment on September 19, 2024 and sell it today you would earn a total of 26.00 from holding Atlas For Investment or generate 32.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Faisal Islamic Bank vs. Atlas For Investment
Performance |
| Timeline |
| Faisal Islamic Bank |
| Atlas For Investment |
Faisal Islamic and Atlas For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faisal Islamic and Atlas For
The main advantage of trading using opposite Faisal Islamic and Atlas For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faisal Islamic position performs unexpectedly, Atlas For 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 Atlas For will offset losses from the drop in Atlas For's long position.| Faisal Islamic vs. Paint Chemicals Industries | Faisal Islamic vs. Reacap Financial Investments | Faisal Islamic vs. Egyptians For Investment | Faisal Islamic vs. Misr Oils Soap |
| Atlas For vs. Faisal Islamic Bank | Atlas For vs. Egyptian Gulf Bank | Atlas For vs. Misr Oils Soap | Atlas For vs. Orascom Investment 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |