Correlation Between El Nasr and Copper For
Can any of the company-specific risk be diversified away by investing in both El Nasr and Copper For 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 El Nasr and Copper For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Nasr Clothes and Copper For Commercial, you can compare the effects of market volatilities on El Nasr and Copper For 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 El Nasr with a short position of Copper For. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Nasr and Copper For.
Diversification Opportunities for El Nasr and Copper For
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KABO and Copper is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding El Nasr Clothes and Copper For Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copper For Commercial and El Nasr 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 El Nasr Clothes are associated (or correlated) with Copper For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copper For Commercial has no effect on the direction of El Nasr i.e., El Nasr and Copper For go up and down completely randomly.
Pair Corralation between El Nasr and Copper For
Assuming the 90 days trading horizon El Nasr Clothes is expected to generate 8.3 times more return on investment than Copper For. However, El Nasr is 8.3 times more volatile than Copper For Commercial. It trades about 0.37 of its potential returns per unit of risk. Copper For Commercial is currently generating about -0.24 per unit of risk. If you would invest 282.00 in El Nasr Clothes on September 19, 2024 and sell it today you would earn a total of 97.00 from holding El Nasr Clothes or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Nasr Clothes vs. Copper For Commercial
Performance |
| Timeline |
| El Nasr Clothes |
| Copper For Commercial |
El Nasr and Copper For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Nasr and Copper For
The main advantage of trading using opposite El Nasr and Copper For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Nasr position performs unexpectedly, Copper For 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 Copper For will offset losses from the drop in Copper For's long position.| El Nasr vs. Paint Chemicals Industries | El Nasr vs. Reacap Financial Investments | El Nasr vs. Egyptians For Investment | El Nasr vs. Misr Oils Soap |
| Copper For vs. Paint Chemicals Industries | Copper For vs. Reacap Financial Investments | Copper For vs. Egyptians For Investment | Copper For 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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