Correlation Between Al Khair and National Bank
Can any of the company-specific risk be diversified away by investing in both Al Khair and National Bank 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 National Bank 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 National Bank, you can compare the effects of market volatilities on Al Khair and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Khair and National Bank.
Diversification Opportunities for Al Khair and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KRDI and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Al Khair River and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Al Khair i.e., Al Khair and National Bank go up and down completely randomly.
Pair Corralation between Al Khair and National Bank
If you would invest 57.00 in Al Khair River on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Al Khair River or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Khair River vs. National Bank
Performance |
| Timeline |
| Al Khair River |
| National Bank |
Al Khair and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Khair and National Bank
The main advantage of trading using opposite Al Khair and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Khair position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Al Khair vs. The United Bank | Al Khair vs. Delta Insurance | Al Khair vs. Odin for Investment | Al Khair vs. Mohandes Insurance |
| National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |