Correlation Between National Bank and Egyptian Transport
Can any of the company-specific risk be diversified away by investing in both National Bank and Egyptian Transport 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 Egyptian Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Egyptian Transport, you can compare the effects of market volatilities on National Bank and Egyptian Transport 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 Egyptian Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Egyptian Transport.
Diversification Opportunities for National Bank and Egyptian Transport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Egyptian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Egyptian Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptian Transport 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 Egyptian Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptian Transport has no effect on the direction of National Bank i.e., National Bank and Egyptian Transport go up and down completely randomly.
Pair Corralation between National Bank and Egyptian Transport
If you would invest 502.00 in Egyptian Transport on October 29, 2024 and sell it today you would earn a total of 50.00 from holding Egyptian Transport or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank vs. Egyptian Transport
Performance |
| Timeline |
| National Bank |
| Egyptian Transport |
National Bank and Egyptian Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Egyptian Transport
The main advantage of trading using opposite National Bank and Egyptian Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Egyptian Transport 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 Egyptian Transport will offset losses from the drop in Egyptian Transport'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 |
| Egyptian Transport vs. International Agricultural Products | Egyptian Transport vs. Cairo Oils Soap | Egyptian Transport vs. Industrial Engineering Projects | Egyptian Transport 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 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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