Correlation Between Nile City and Commercial International
Can any of the company-specific risk be diversified away by investing in both Nile City and Commercial International 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 Nile City and Commercial International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nile City Investment and Commercial International Bank Egypt, you can compare the effects of market volatilities on Nile City and Commercial International 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 Nile City with a short position of Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Commercial International.
Diversification Opportunities for Nile City and Commercial International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nile and Commercial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nile City Investment and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International and Nile City 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 Nile City Investment are associated (or correlated) with Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Nile City i.e., Nile City and Commercial International go up and down completely randomly.
Pair Corralation between Nile City and Commercial International
If you would invest 5,215 in Commercial International Bank Egypt on September 2, 2024 and sell it today you would earn a total of 2,925 from holding Commercial International Bank Egypt or generate 56.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nile City Investment vs. Commercial International Bank
Performance |
| Timeline |
| Nile City Investment |
| Commercial International |
Nile City and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Commercial International
The main advantage of trading using opposite Nile City and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.| Nile City vs. Qatar Natl Bank | Nile City vs. Faisal Islamic Bank | Nile City vs. QALA For Financial | Nile City vs. Act Financial |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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