Correlation Between Nile City and Orascom Financial
Can any of the company-specific risk be diversified away by investing in both Nile City and Orascom Financial 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 Orascom Financial 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 Orascom Financial Holding, you can compare the effects of market volatilities on Nile City and Orascom Financial 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 Orascom Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Orascom Financial.
Diversification Opportunities for Nile City and Orascom Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nile and Orascom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nile City Investment and Orascom Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Financial Holding 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 Orascom Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Financial Holding has no effect on the direction of Nile City i.e., Nile City and Orascom Financial go up and down completely randomly.
Pair Corralation between Nile City and Orascom Financial
If you would invest 34.00 in Orascom Financial Holding on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Orascom Financial Holding or generate 2.94% 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. Orascom Financial Holding
Performance |
| Timeline |
| Nile City Investment |
| Orascom Financial Holding |
Nile City and Orascom Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Orascom Financial
The main advantage of trading using opposite Nile City and Orascom Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City position performs unexpectedly, Orascom Financial 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 Orascom Financial will offset losses from the drop in Orascom Financial'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 |
| Orascom Financial vs. Orascom Construction PLC | Orascom Financial vs. International Agricultural Products | Orascom Financial vs. Gadwa For Industrial | Orascom Financial vs. Nozha International Hospital |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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