Correlation Between National Bank and Al Khair
Can any of the company-specific risk be diversified away by investing in both National Bank and Al Khair 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 Al Khair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Al Khair River, you can compare the effects of market volatilities on National Bank and Al Khair 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 Al Khair. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Al Khair.
Diversification Opportunities for National Bank and Al Khair
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and KRDI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Al Khair River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Khair River 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 Al Khair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Khair River has no effect on the direction of National Bank i.e., National Bank and Al Khair go up and down completely randomly.
Pair Corralation between National Bank and Al Khair
If you would invest 57.00 in Al Khair River on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Al Khair River or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank vs. Al Khair River
Performance |
| Timeline |
| National Bank |
| Al Khair River |
National Bank and Al Khair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Al Khair
The main advantage of trading using opposite National Bank and Al Khair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Al Khair 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 Al Khair will offset losses from the drop in Al Khair'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 |
| Al Khair vs. The United Bank | Al Khair vs. Delta Insurance | Al Khair vs. Odin for Investment | Al Khair vs. Mohandes Insurance |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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