Correlation Between Grand Investment and Sidi Kerir
Can any of the company-specific risk be diversified away by investing in both Grand Investment and Sidi Kerir 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 Grand Investment and Sidi Kerir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Investment Capital and Sidi Kerir Petrochemicals, you can compare the effects of market volatilities on Grand Investment and Sidi Kerir 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 Grand Investment with a short position of Sidi Kerir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Investment and Sidi Kerir.
Diversification Opportunities for Grand Investment and Sidi Kerir
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grand and Sidi is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grand Investment Capital and Sidi Kerir Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidi Kerir Petrochemicals and Grand Investment 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 Grand Investment Capital are associated (or correlated) with Sidi Kerir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidi Kerir Petrochemicals has no effect on the direction of Grand Investment i.e., Grand Investment and Sidi Kerir go up and down completely randomly.
Pair Corralation between Grand Investment and Sidi Kerir
Assuming the 90 days trading horizon Grand Investment is expected to generate 4.26 times less return on investment than Sidi Kerir. In addition to that, Grand Investment is 1.61 times more volatile than Sidi Kerir Petrochemicals. It trades about 0.02 of its total potential returns per unit of risk. Sidi Kerir Petrochemicals is currently generating about 0.11 per unit of volatility. If you would invest 1,933 in Sidi Kerir Petrochemicals on November 3, 2024 and sell it today you would earn a total of 58.00 from holding Sidi Kerir Petrochemicals or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Investment Capital vs. Sidi Kerir Petrochemicals
Performance |
| Timeline |
| Grand Investment Capital |
| Sidi Kerir Petrochemicals |
Grand Investment and Sidi Kerir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Investment and Sidi Kerir
The main advantage of trading using opposite Grand Investment and Sidi Kerir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Investment position performs unexpectedly, Sidi Kerir 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 Sidi Kerir will offset losses from the drop in Sidi Kerir's long position.| Grand Investment vs. Act Financial | Grand Investment vs. Mohandes Insurance | Grand Investment vs. Qatar Natl Bank | Grand Investment vs. Dice Sport Casual |
| Sidi Kerir vs. The United Bank | Sidi Kerir vs. Commercial International Bank Egypt | Sidi Kerir vs. Egyptian Media Production | Sidi Kerir vs. Mohandes Insurance |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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