Correlation Between Orascom Financial and Inter Cairo
Can any of the company-specific risk be diversified away by investing in both Orascom Financial and Inter Cairo 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 Orascom Financial and Inter Cairo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orascom Financial Holding and Inter Cairo For Aluminum, you can compare the effects of market volatilities on Orascom Financial and Inter Cairo 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 Orascom Financial with a short position of Inter Cairo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orascom Financial and Inter Cairo.
Diversification Opportunities for Orascom Financial and Inter Cairo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orascom and Inter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orascom Financial Holding and Inter Cairo For Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Cairo For and Orascom Financial 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 Orascom Financial Holding are associated (or correlated) with Inter Cairo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Cairo For has no effect on the direction of Orascom Financial i.e., Orascom Financial and Inter Cairo go up and down completely randomly.
Pair Corralation between Orascom Financial and Inter Cairo
If you would invest 25.00 in Orascom Financial Holding on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Orascom Financial Holding or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Orascom Financial Holding vs. Inter Cairo For Aluminum
Performance |
| Timeline |
| Orascom Financial Holding |
| Inter Cairo For |
Orascom Financial and Inter Cairo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orascom Financial and Inter Cairo
The main advantage of trading using opposite Orascom Financial and Inter Cairo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orascom Financial position performs unexpectedly, Inter Cairo 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 Inter Cairo will offset losses from the drop in Inter Cairo's long position.| Orascom Financial vs. Orascom Construction PLC | Orascom Financial vs. Nile City Investment | Orascom Financial vs. The Arab Dairy | Orascom Financial vs. Sharkia National Food |
| Inter Cairo vs. Paint Chemicals Industries | Inter Cairo vs. Reacap Financial Investments | Inter Cairo vs. Egyptians For Investment | Inter Cairo vs. Misr Oils Soap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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