Correlation Between Nile City and Cairo Oils
Can any of the company-specific risk be diversified away by investing in both Nile City and Cairo Oils 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 Cairo Oils 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 Cairo Oils Soap, you can compare the effects of market volatilities on Nile City and Cairo Oils 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 Cairo Oils. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Cairo Oils.
Diversification Opportunities for Nile City and Cairo Oils
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nile and Cairo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nile City Investment and Cairo Oils Soap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Oils Soap 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 Cairo Oils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Oils Soap has no effect on the direction of Nile City i.e., Nile City and Cairo Oils go up and down completely randomly.
Pair Corralation between Nile City and Cairo Oils
If you would invest 15.00 in Cairo Oils Soap on November 28, 2024 and sell it today you would earn a total of 24.00 from holding Cairo Oils Soap or generate 160.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Nile City Investment vs. Cairo Oils Soap
Performance |
| Timeline |
| Nile City Investment |
| Cairo Oils Soap |
Nile City and Cairo Oils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Cairo Oils
The main advantage of trading using opposite Nile City and Cairo Oils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City position performs unexpectedly, Cairo Oils 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 Cairo Oils will offset losses from the drop in Cairo Oils' long position.| Nile City vs. Union National Bank | Nile City vs. Fawry For Banking | Nile City vs. Credit Agricole Egypt | Nile City vs. Egypt Aluminum |
| Cairo Oils vs. Assiut Islamic Trading | Cairo Oils vs. Cleopatra Hospital | Cairo Oils vs. Nile City Investment | Cairo Oils vs. Digitize for 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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