Correlation Between Ismailia Development and Natural Gas
Can any of the company-specific risk be diversified away by investing in both Ismailia Development and Natural Gas 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 Ismailia Development and Natural Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ismailia Development and and Natural Gas Mining, you can compare the effects of market volatilities on Ismailia Development and Natural Gas 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 Ismailia Development with a short position of Natural Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ismailia Development and Natural Gas.
Diversification Opportunities for Ismailia Development and Natural Gas
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ismailia and Natural is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ismailia Development and and Natural Gas Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Gas Mining and Ismailia Development 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 Ismailia Development and are associated (or correlated) with Natural Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Gas Mining has no effect on the direction of Ismailia Development i.e., Ismailia Development and Natural Gas go up and down completely randomly.
Pair Corralation between Ismailia Development and Natural Gas
Assuming the 90 days trading horizon Ismailia Development and is expected to generate 1.58 times more return on investment than Natural Gas. However, Ismailia Development is 1.58 times more volatile than Natural Gas Mining. It trades about -0.02 of its potential returns per unit of risk. Natural Gas Mining is currently generating about -0.26 per unit of risk. If you would invest 1,405 in Ismailia Development and on September 12, 2024 and sell it today you would lose (16.00) from holding Ismailia Development and or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ismailia Development and vs. Natural Gas Mining
Performance |
| Timeline |
| Ismailia Development and |
| Natural Gas Mining |
Ismailia Development and Natural Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ismailia Development and Natural Gas
The main advantage of trading using opposite Ismailia Development and Natural Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ismailia Development position performs unexpectedly, Natural Gas 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 Natural Gas will offset losses from the drop in Natural Gas' long position.| Ismailia Development vs. Arabia Investments Holding | Ismailia Development vs. Nile City Investment | Ismailia Development vs. Orascom Investment Holding | Ismailia Development vs. Arab Moltaka Investments |
| Natural Gas vs. Paint Chemicals Industries | Natural Gas vs. Reacap Financial Investments | Natural Gas vs. Egyptians For Investment | Natural Gas 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |