Correlation Between Egyptian Iron and Grand Investment
Can any of the company-specific risk be diversified away by investing in both Egyptian Iron and Grand Investment 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 Egyptian Iron and Grand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptian Iron Steel and Grand Investment Capital, you can compare the effects of market volatilities on Egyptian Iron and Grand Investment 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 Egyptian Iron with a short position of Grand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptian Iron and Grand Investment.
Diversification Opportunities for Egyptian Iron and Grand Investment
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Egyptian and Grand is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Egyptian Iron Steel and Grand Investment Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Investment Capital and Egyptian Iron 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 Egyptian Iron Steel are associated (or correlated) with Grand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Investment Capital has no effect on the direction of Egyptian Iron i.e., Egyptian Iron and Grand Investment go up and down completely randomly.
Pair Corralation between Egyptian Iron and Grand Investment
Assuming the 90 days trading horizon Egyptian Iron is expected to generate 153.1 times less return on investment than Grand Investment. In addition to that, Egyptian Iron is 1.0 times more volatile than Grand Investment Capital. It trades about 0.0 of its total potential returns per unit of risk. Grand Investment Capital is currently generating about 0.41 per unit of volatility. If you would invest 946.00 in Grand Investment Capital on October 12, 2024 and sell it today you would earn a total of 191.00 from holding Grand Investment Capital or generate 20.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egyptian Iron Steel vs. Grand Investment Capital
Performance |
| Timeline |
| Egyptian Iron Steel |
| Grand Investment Capital |
Egyptian Iron and Grand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptian Iron and Grand Investment
The main advantage of trading using opposite Egyptian Iron and Grand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptian Iron position performs unexpectedly, Grand Investment 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 Grand Investment will offset losses from the drop in Grand Investment's long position.| Egyptian Iron vs. Ezz Steel | Egyptian Iron vs. Egyptian Financial Industrial | Egyptian Iron vs. Nozha International Hospital | Egyptian Iron vs. Misr Chemical Industries |
| Grand Investment vs. Egyptian Transport | Grand Investment vs. Egyptian Iron Steel | Grand Investment vs. Contact Financial Holding | Grand Investment vs. Al Baraka 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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