Correlation Between El Kahera and Mohandes Insurance
Can any of the company-specific risk be diversified away by investing in both El Kahera and Mohandes Insurance 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 Kahera and Mohandes Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between El Kahera El and Mohandes Insurance, you can compare the effects of market volatilities on El Kahera and Mohandes Insurance 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 Kahera with a short position of Mohandes Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Kahera and Mohandes Insurance.
Diversification Opportunities for El Kahera and Mohandes Insurance
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between KWIN and Mohandes is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding El Kahera El and Mohandes Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mohandes Insurance and El Kahera 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 Kahera El are associated (or correlated) with Mohandes Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mohandes Insurance has no effect on the direction of El Kahera i.e., El Kahera and Mohandes Insurance go up and down completely randomly.
Pair Corralation between El Kahera and Mohandes Insurance
Assuming the 90 days trading horizon El Kahera is expected to generate 1.21 times less return on investment than Mohandes Insurance. In addition to that, El Kahera is 1.68 times more volatile than Mohandes Insurance. It trades about 0.07 of its total potential returns per unit of risk. Mohandes Insurance is currently generating about 0.14 per unit of volatility. If you would invest 1,712 in Mohandes Insurance on September 2, 2024 and sell it today you would earn a total of 444.00 from holding Mohandes Insurance or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Kahera El vs. Mohandes Insurance
Performance |
| Timeline |
| El Kahera El |
| Mohandes Insurance |
El Kahera and Mohandes Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Kahera and Mohandes Insurance
The main advantage of trading using opposite El Kahera and Mohandes Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Kahera position performs unexpectedly, Mohandes Insurance 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 Mohandes Insurance will offset losses from the drop in Mohandes Insurance's long position.| El Kahera vs. Mohandes Insurance | El Kahera vs. El Ahli Investment | El Kahera vs. Telecom Egypt | El Kahera vs. Cairo For Investment |
| Mohandes Insurance vs. Egyptians For Investment | Mohandes Insurance vs. Misr Oils Soap | Mohandes Insurance vs. Global Telecom Holding | Mohandes Insurance vs. Qatar Natl Bank |
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
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |