Correlation Between National Bank and Misr National
Can any of the company-specific risk be diversified away by investing in both National Bank and Misr National 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 National Bank and Misr National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Misr National Steel, you can compare the effects of market volatilities on National Bank and Misr National 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 National Bank with a short position of Misr National. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Misr National.
Diversification Opportunities for National Bank and Misr National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Misr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Misr National Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Misr National Steel and National Bank 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 National Bank are associated (or correlated) with Misr National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Misr National Steel has no effect on the direction of National Bank i.e., National Bank and Misr National go up and down completely randomly.
Pair Corralation between National Bank and Misr National
Assuming the 90 days trading horizon National Bank is expected to under-perform the Misr National. But the stock apears to be less risky and, when comparing its historical volatility, National Bank is 2.53 times less risky than Misr National. The stock trades about -0.05 of its potential returns per unit of risk. The Misr National Steel is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Misr National Steel on November 19, 2024 and sell it today you would earn a total of 384.00 from holding Misr National Steel or generate 268.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
National Bank vs. Misr National Steel
Performance |
| Timeline |
| National Bank |
| Misr National Steel |
National Bank and Misr National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Misr National
The main advantage of trading using opposite National Bank and Misr National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Misr National 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 Misr National will offset losses from the drop in Misr National's long position.| National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Oils Soap |
| Misr National vs. Misr Financial Investments | Misr National vs. Reacap Financial Investments | Misr National vs. Al Khair River | Misr National vs. Medical Packaging |
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
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |