Correlation Between Nile City and Orascom Investment
Can any of the company-specific risk be diversified away by investing in both Nile City and Orascom Investment 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 Investment 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 Investment Holding, you can compare the effects of market volatilities on Nile City and Orascom Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Orascom Investment.
Diversification Opportunities for Nile City and Orascom Investment
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 Investment Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Investment has no effect on the direction of Nile City i.e., Nile City and Orascom Investment go up and down completely randomly.
Pair Corralation between Nile City and Orascom Investment
If you would invest 33.00 in Orascom Investment Holding on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Orascom Investment Holding or generate 27.27% 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 Investment Holding
Performance |
| Timeline |
| Nile City Investment |
| Orascom Investment |
Nile City and Orascom Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Orascom Investment
The main advantage of trading using opposite Nile City and Orascom Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City position performs unexpectedly, Orascom Investment 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 Investment will offset losses from the drop in Orascom Investment's long position.| Nile City vs. Misr Oils Soap | Nile City vs. Global Telecom Holding | Nile City vs. Qatar Natl Bank | Nile City vs. Orascom Construction PLC |
| Orascom Investment vs. Zahraa Maadi Investment | Orascom Investment vs. Egyptians For Investment | Orascom Investment vs. Nile City Investment | Orascom Investment vs. Telecom Egypt |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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