Correlation Between Faisal Islamic and Copper For
Can any of the company-specific risk be diversified away by investing in both Faisal Islamic and Copper 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 Copper 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 Copper For Commercial, you can compare the effects of market volatilities on Faisal Islamic and Copper 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 Copper For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faisal Islamic and Copper For.
Diversification Opportunities for Faisal Islamic and Copper For
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Faisal and Copper is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Faisal Islamic Bank and Copper For Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper For Commercial 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 Copper For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper For Commercial has no effect on the direction of Faisal Islamic i.e., Faisal Islamic and Copper For go up and down completely randomly.
Pair Corralation between Faisal Islamic and Copper For
Assuming the 90 days trading horizon Faisal Islamic Bank is expected to generate 0.69 times more return on investment than Copper For. However, Faisal Islamic Bank is 1.45 times less risky than Copper For. It trades about 0.16 of its potential returns per unit of risk. Copper For Commercial is currently generating about -0.12 per unit of risk. If you would invest 3,102 in Faisal Islamic Bank on September 2, 2024 and sell it today you would earn a total of 805.00 from holding Faisal Islamic Bank or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Faisal Islamic Bank vs. Copper For Commercial
Performance |
| Timeline |
| Faisal Islamic Bank |
| Copper For Commercial |
Faisal Islamic and Copper For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faisal Islamic and Copper For
The main advantage of trading using opposite Faisal Islamic and Copper For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faisal Islamic position performs unexpectedly, Copper 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 Copper For will offset losses from the drop in Copper For's long position.| Faisal Islamic vs. Egyptians For Investment | Faisal Islamic vs. Misr Oils Soap | Faisal Islamic vs. Global Telecom Holding | Faisal Islamic vs. Qatar Natl Bank |
| Copper For vs. Egyptians For Investment | Copper For vs. Misr Oils Soap | Copper For vs. Global Telecom Holding | Copper For vs. Qatar Natl 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |