Correlation Between Misr Financial and Orascom Investment
Can any of the company-specific risk be diversified away by investing in both Misr Financial and Orascom Investment 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 Investment 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 Investment Holding, you can compare the effects of market volatilities on Misr Financial and Orascom Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Financial and Orascom Investment.
Diversification Opportunities for Misr Financial and Orascom Investment
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 Investment Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Investment has no effect on the direction of Misr Financial i.e., Misr Financial and Orascom Investment go up and down completely randomly.
Pair Corralation between Misr Financial and Orascom Investment
If you would invest 41.00 in Orascom Investment Holding on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Orascom Investment Holding or generate 21.95% 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 Investment Holding
Performance |
| Timeline |
| Misr Financial Inves |
| Orascom Investment |
Misr Financial and Orascom Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Financial and Orascom Investment
The main advantage of trading using opposite Misr Financial and Orascom Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Financial position performs unexpectedly, Orascom Investment 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 Investment will offset losses from the drop in Orascom Investment's long position.| Misr Financial vs. Sidi Kerir Petrochemicals | Misr Financial vs. Act Financial | Misr Financial vs. Union National Bank | Misr Financial vs. Contact Financial Holding |
| Orascom Investment vs. Misr Chemical Industries | Orascom Investment vs. El Ahli Investment | Orascom Investment vs. Arab Moltaka Investments | Orascom Investment vs. Nile City Investment |
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 Correlations module to find global opportunities by holding instruments from different markets.
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