Correlation Between Misr Oils and Sidi Kerir
Can any of the company-specific risk be diversified away by investing in both Misr Oils and Sidi Kerir 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 Oils and Sidi Kerir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Oils Soap and Sidi Kerir Petrochemicals, you can compare the effects of market volatilities on Misr Oils and Sidi Kerir 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 Oils with a short position of Sidi Kerir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Oils and Sidi Kerir.
Diversification Opportunities for Misr Oils and Sidi Kerir
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Misr and Sidi is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Misr Oils Soap and Sidi Kerir Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidi Kerir Petrochemicals and Misr Oils 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 Oils Soap are associated (or correlated) with Sidi Kerir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidi Kerir Petrochemicals has no effect on the direction of Misr Oils i.e., Misr Oils and Sidi Kerir go up and down completely randomly.
Pair Corralation between Misr Oils and Sidi Kerir
If you would invest 2,060 in Sidi Kerir Petrochemicals on December 16, 2024 and sell it today you would earn a total of 230.00 from holding Sidi Kerir Petrochemicals or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Misr Oils Soap vs. Sidi Kerir Petrochemicals
Performance |
| Timeline |
| Misr Oils Soap |
| Sidi Kerir Petrochemicals |
Misr Oils and Sidi Kerir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Oils and Sidi Kerir
The main advantage of trading using opposite Misr Oils and Sidi Kerir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Oils position performs unexpectedly, Sidi Kerir 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 Sidi Kerir will offset losses from the drop in Sidi Kerir's long position.| Misr Oils vs. Paint Chemicals Industries | ||
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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