Correlation Between Orascom Financial and National Drilling
Can any of the company-specific risk be diversified away by investing in both Orascom Financial and National Drilling 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 National Drilling 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 National Drilling, you can compare the effects of market volatilities on Orascom Financial and National Drilling 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 National Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orascom Financial and National Drilling.
Diversification Opportunities for Orascom Financial and National Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orascom and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Orascom Financial Holding and National Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Drilling 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 National Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Drilling has no effect on the direction of Orascom Financial i.e., Orascom Financial and National Drilling go up and down completely randomly.
Pair Corralation between Orascom Financial and National Drilling
If you would invest 24.00 in Orascom Financial Holding on September 14, 2024 and sell it today you would earn a total of 16.00 from holding Orascom Financial Holding or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Orascom Financial Holding vs. National Drilling
Performance |
| Timeline |
| Orascom Financial Holding |
| National Drilling |
Orascom Financial and National Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orascom Financial and National Drilling
The main advantage of trading using opposite Orascom Financial and National Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orascom Financial position performs unexpectedly, National Drilling 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 National Drilling will offset losses from the drop in National Drilling's long position.| Orascom Financial vs. Paint Chemicals Industries | Orascom Financial vs. Reacap Financial Investments | Orascom Financial vs. Egyptians For Investment | Orascom Financial vs. Misr Oils Soap |
| National Drilling vs. Export Development Bank | National Drilling vs. National Bank | National Drilling vs. Arab Moltaka Investments | National Drilling vs. Qatar Natl Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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