Correlation Between El Nasr and Orascom Investment
Can any of the company-specific risk be diversified away by investing in both El Nasr and Orascom 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 El Nasr and Orascom Investment 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 Orascom Investment Holding, you can compare the effects of market volatilities on El Nasr and Orascom 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 El Nasr with a short position of Orascom Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Nasr and Orascom Investment.
Diversification Opportunities for El Nasr and Orascom Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KABO and Orascom is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding El Nasr Clothes and Orascom Investment Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Investment 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 Orascom Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Investment has no effect on the direction of El Nasr i.e., El Nasr and Orascom Investment go up and down completely randomly.
Pair Corralation between El Nasr and Orascom Investment
Assuming the 90 days trading horizon El Nasr Clothes is expected to generate 1.23 times more return on investment than Orascom Investment. However, El Nasr is 1.23 times more volatile than Orascom Investment Holding. It trades about 0.22 of its potential returns per unit of risk. Orascom Investment Holding is currently generating about 0.15 per unit of risk. If you would invest 273.00 in El Nasr Clothes on September 12, 2024 and sell it today you would earn a total of 123.00 from holding El Nasr Clothes or generate 45.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.08% |
| Values | Daily Returns |
El Nasr Clothes vs. Orascom Investment Holding
Performance |
| Timeline |
| El Nasr Clothes |
| Orascom Investment |
El Nasr and Orascom Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Nasr and Orascom Investment
The main advantage of trading using opposite El Nasr and Orascom Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Nasr position performs unexpectedly, Orascom 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 Orascom Investment will offset losses from the drop in Orascom Investment's long position.| El Nasr vs. Egyptian Transport | El Nasr vs. Global Telecom Holding | El Nasr vs. Misr Financial Investments | El Nasr vs. Cairo For Investment |
| Orascom Investment vs. Misr Chemical Industries | Orascom Investment vs. El Ahli Investment | Orascom Investment vs. Arab Moltaka Investments | Orascom Investment vs. Nile City Investment |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |