Correlation Between Inter Cairo and El Ahli
Can any of the company-specific risk be diversified away by investing in both Inter Cairo and El Ahli 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 Inter Cairo and El Ahli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Cairo For Aluminum and El Ahli Investment, you can compare the effects of market volatilities on Inter Cairo and El Ahli 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 Inter Cairo with a short position of El Ahli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Cairo and El Ahli.
Diversification Opportunities for Inter Cairo and El Ahli
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inter and AFDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inter Cairo For Aluminum and El Ahli Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Ahli Investment and Inter Cairo 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 Inter Cairo For Aluminum are associated (or correlated) with El Ahli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Ahli Investment has no effect on the direction of Inter Cairo i.e., Inter Cairo and El Ahli go up and down completely randomly.
Pair Corralation between Inter Cairo and El Ahli
If you would invest 1,590 in El Ahli Investment on September 12, 2024 and sell it today you would earn a total of 1,510 from holding El Ahli Investment or generate 94.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Cairo For Aluminum vs. El Ahli Investment
Performance |
| Timeline |
| Inter Cairo For |
| El Ahli Investment |
Inter Cairo and El Ahli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Cairo and El Ahli
The main advantage of trading using opposite Inter Cairo and El Ahli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Cairo position performs unexpectedly, El Ahli 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 El Ahli will offset losses from the drop in El Ahli's long position.| Inter Cairo vs. Paint Chemicals Industries | Inter Cairo vs. Reacap Financial Investments | Inter Cairo vs. Egyptians For Investment | Inter Cairo vs. Misr Oils Soap |
| El Ahli vs. Paint Chemicals Industries | El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli vs. Misr Oils Soap |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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