Correlation Between El Nasr and International Company
Can any of the company-specific risk be diversified away by investing in both El Nasr and International Company 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 International Company 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 International Company For, you can compare the effects of market volatilities on El Nasr and International Company 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 International Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Nasr and International Company.
Diversification Opportunities for El Nasr and International Company
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KABO and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding El Nasr Clothes and International Company For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Company 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 International Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Company has no effect on the direction of El Nasr i.e., El Nasr and International Company go up and down completely randomly.
Pair Corralation between El Nasr and International Company
Assuming the 90 days trading horizon El Nasr is expected to generate 7.87 times less return on investment than International Company. But when comparing it to its historical volatility, El Nasr Clothes is 12.52 times less risky than International Company. It trades about 0.07 of its potential returns per unit of risk. International Company For is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,100 in International Company For on September 19, 2024 and sell it today you would earn a total of 0.00 from holding International Company For or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
El Nasr Clothes vs. International Company For
Performance |
| Timeline |
| El Nasr Clothes |
| International Company |
El Nasr and International Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Nasr and International Company
The main advantage of trading using opposite El Nasr and International Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Nasr position performs unexpectedly, International Company 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 International Company will offset losses from the drop in International Company'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 |
| International Company vs. El Nasr Clothes | International Company vs. Nozha International Hospital | International Company vs. Medical Packaging | International Company vs. Egypt Aluminum |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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