Correlation Between Al Khair and El Ahli
Can any of the company-specific risk be diversified away by investing in both Al Khair and El Ahli 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 Al Khair and El Ahli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Khair River and El Ahli Investment, you can compare the effects of market volatilities on Al Khair and El Ahli 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 Al Khair with a short position of El Ahli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Khair and El Ahli.
Diversification Opportunities for Al Khair and El Ahli
Very good diversification
The 3 months correlation between KRDI and AFDI is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Al Khair River and El Ahli Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Ahli Investment and Al Khair 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 Al Khair River are associated (or correlated) with El Ahli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Ahli Investment has no effect on the direction of Al Khair i.e., Al Khair and El Ahli go up and down completely randomly.
Pair Corralation between Al Khair and El Ahli
Assuming the 90 days trading horizon Al Khair River is expected to generate 2.05 times more return on investment than El Ahli. However, Al Khair is 2.05 times more volatile than El Ahli Investment. It trades about 0.12 of its potential returns per unit of risk. El Ahli Investment is currently generating about -0.34 per unit of risk. If you would invest 51.00 in Al Khair River on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Al Khair River or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Khair River vs. El Ahli Investment
Performance |
| Timeline |
| Al Khair River |
| El Ahli Investment |
Al Khair and El Ahli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Khair and El Ahli
The main advantage of trading using opposite Al Khair and El Ahli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Khair position performs unexpectedly, El Ahli 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 El Ahli will offset losses from the drop in El Ahli's long position.| Al Khair vs. Paint Chemicals Industries | Al Khair vs. Reacap Financial Investments | Al Khair vs. Egyptians For Investment | Al Khair vs. Misr Oils Soap |
| El Ahli vs. Paint Chemicals Industries | El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |