Correlation Between Inter Cairo and Commercial International
Can any of the company-specific risk be diversified away by investing in both Inter Cairo and Commercial International 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 Commercial International 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 Commercial International Bank Egypt, you can compare the effects of market volatilities on Inter Cairo and Commercial International 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 Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Cairo and Commercial International.
Diversification Opportunities for Inter Cairo and Commercial International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inter and Commercial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inter Cairo For Aluminum and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Inter Cairo i.e., Inter Cairo and Commercial International go up and down completely randomly.
Pair Corralation between Inter Cairo and Commercial International
If you would invest 100.00 in Inter Cairo For Aluminum on October 31, 2024 and sell it today you would earn a total of 0.00 from holding Inter Cairo For Aluminum or generate 0.0% 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. Commercial International Bank
Performance |
| Timeline |
| Inter Cairo For |
| Commercial International |
Inter Cairo and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Cairo and Commercial International
The main advantage of trading using opposite Inter Cairo and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Cairo position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.| Inter Cairo vs. National Drilling | Inter Cairo vs. Egyptian Chemical Industries | Inter Cairo vs. Misr Chemical Industries | Inter Cairo vs. Edita Food Industries |
| Commercial International vs. Misr Chemical Industries | Commercial International vs. AJWA for Food | Commercial International vs. Copper For Commercial | Commercial International vs. Dice Sport Casual |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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