Correlation Between Misr Financial and Orascom Financial
Can any of the company-specific risk be diversified away by investing in both Misr Financial and Orascom Financial 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 Misr Financial and Orascom Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Financial Investments and Orascom Financial Holding, you can compare the effects of market volatilities on Misr Financial and Orascom Financial 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 Misr Financial with a short position of Orascom Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Financial and Orascom Financial.
Diversification Opportunities for Misr Financial and Orascom Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Misr and Orascom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Misr Financial Investments and Orascom Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Financial Holding and Misr Financial 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 Misr Financial Investments are associated (or correlated) with Orascom Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Financial Holding has no effect on the direction of Misr Financial i.e., Misr Financial and Orascom Financial go up and down completely randomly.
Pair Corralation between Misr Financial and Orascom Financial
If you would invest 34.00 in Orascom Financial Holding on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Orascom Financial Holding or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Misr Financial Investments vs. Orascom Financial Holding
Performance |
| Timeline |
| Misr Financial Inves |
| Orascom Financial Holding |
Misr Financial and Orascom Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Financial and Orascom Financial
The main advantage of trading using opposite Misr Financial and Orascom Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Financial position performs unexpectedly, Orascom Financial 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 Financial will offset losses from the drop in Orascom Financial's long position.| Misr Financial vs. Paint Chemicals Industries | Misr Financial vs. Egyptians For Investment | Misr Financial vs. Misr Oils Soap | Misr Financial vs. Global Telecom Holding |
| Orascom Financial vs. Paint Chemicals Industries | Orascom Financial vs. Egyptians For Investment | Orascom Financial vs. Misr Oils Soap | Orascom Financial vs. Global Telecom Holding |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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