Correlation Between Nile City and Palm Hills
Can any of the company-specific risk be diversified away by investing in both Nile City and Palm Hills 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 Palm Hills 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 Palm Hills Development, you can compare the effects of market volatilities on Nile City and Palm Hills 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 Palm Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Palm Hills.
Diversification Opportunities for Nile City and Palm Hills
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nile and Palm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nile City Investment and Palm Hills Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palm Hills Development 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 Palm Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palm Hills Development has no effect on the direction of Nile City i.e., Nile City and Palm Hills go up and down completely randomly.
Pair Corralation between Nile City and Palm Hills
If you would invest 34,428 in Nile City Investment on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Nile City Investment or generate 0.0% 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. Palm Hills Development
Performance |
| Timeline |
| Nile City Investment |
| Palm Hills Development |
Nile City and Palm Hills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Palm Hills
The main advantage of trading using opposite Nile City and Palm Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City position performs unexpectedly, Palm Hills 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 Palm Hills will offset losses from the drop in Palm Hills' 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 |
| Palm Hills vs. Al Arafa Investment | Palm Hills vs. ODIN Investments | Palm Hills vs. Al Khair River | Palm Hills vs. Misr Financial Investments |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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