Correlation Between Misr Hotels and Alexandria Mineral
Can any of the company-specific risk be diversified away by investing in both Misr Hotels and Alexandria Mineral 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 Hotels and Alexandria Mineral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Hotels and Alexandria Mineral Oils, you can compare the effects of market volatilities on Misr Hotels and Alexandria Mineral 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 Hotels with a short position of Alexandria Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Hotels and Alexandria Mineral.
Diversification Opportunities for Misr Hotels and Alexandria Mineral
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Misr and Alexandria is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Misr Hotels and Alexandria Mineral Oils in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria Mineral Oils and Misr Hotels 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 Hotels are associated (or correlated) with Alexandria Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria Mineral Oils has no effect on the direction of Misr Hotels i.e., Misr Hotels and Alexandria Mineral go up and down completely randomly.
Pair Corralation between Misr Hotels and Alexandria Mineral
Assuming the 90 days trading horizon Misr Hotels is expected to under-perform the Alexandria Mineral. In addition to that, Misr Hotels is 2.15 times more volatile than Alexandria Mineral Oils. It trades about -0.02 of its total potential returns per unit of risk. Alexandria Mineral Oils is currently generating about 0.01 per unit of volatility. If you would invest 810.00 in Alexandria Mineral Oils on September 12, 2024 and sell it today you would lose (45.00) from holding Alexandria Mineral Oils or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Misr Hotels vs. Alexandria Mineral Oils
Performance |
| Timeline |
| Misr Hotels |
| Alexandria Mineral Oils |
Misr Hotels and Alexandria Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Hotels and Alexandria Mineral
The main advantage of trading using opposite Misr Hotels and Alexandria Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Hotels position performs unexpectedly, Alexandria Mineral 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 Alexandria Mineral will offset losses from the drop in Alexandria Mineral's long position.| Misr Hotels vs. Paint Chemicals Industries | Misr Hotels vs. Reacap Financial Investments | Misr Hotels vs. Egyptians For Investment | Misr Hotels vs. Misr Oils Soap |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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