Correlation Between El Nasr and Speed Medical
Can any of the company-specific risk be diversified away by investing in both El Nasr and Speed Medical 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 Speed Medical 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 Speed Medical, you can compare the effects of market volatilities on El Nasr and Speed Medical 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 Speed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Nasr and Speed Medical.
Diversification Opportunities for El Nasr and Speed Medical
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between KABO and Speed is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding El Nasr Clothes and Speed Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speed Medical 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 Speed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speed Medical has no effect on the direction of El Nasr i.e., El Nasr and Speed Medical go up and down completely randomly.
Pair Corralation between El Nasr and Speed Medical
Assuming the 90 days trading horizon El Nasr Clothes is expected to generate 1.29 times more return on investment than Speed Medical. However, El Nasr is 1.29 times more volatile than Speed Medical. It trades about 0.09 of its potential returns per unit of risk. Speed Medical is currently generating about -0.04 per unit of risk. If you would invest 237.00 in El Nasr Clothes on September 12, 2024 and sell it today you would earn a total of 159.00 from holding El Nasr Clothes or generate 67.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Nasr Clothes vs. Speed Medical
Performance |
| Timeline |
| El Nasr Clothes |
| Speed Medical |
El Nasr and Speed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Nasr and Speed Medical
The main advantage of trading using opposite El Nasr and Speed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Nasr position performs unexpectedly, Speed Medical 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 Speed Medical will offset losses from the drop in Speed Medical'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 |
| Speed Medical vs. Paint Chemicals Industries | Speed Medical vs. Reacap Financial Investments | Speed Medical vs. Egyptians For Investment | Speed Medical 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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