Correlation Between Orascom Investment and Egyptian Media
Can any of the company-specific risk be diversified away by investing in both Orascom Investment and Egyptian Media 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 Investment and Egyptian Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orascom Investment Holding and Egyptian Media Production, you can compare the effects of market volatilities on Orascom Investment and Egyptian Media 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 Investment with a short position of Egyptian Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orascom Investment and Egyptian Media.
Diversification Opportunities for Orascom Investment and Egyptian Media
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orascom and Egyptian is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Orascom Investment Holding and Egyptian Media Production in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptian Media Production and Orascom Investment 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 Investment Holding are associated (or correlated) with Egyptian Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptian Media Production has no effect on the direction of Orascom Investment i.e., Orascom Investment and Egyptian Media go up and down completely randomly.
Pair Corralation between Orascom Investment and Egyptian Media
Assuming the 90 days trading horizon Orascom Investment Holding is expected to under-perform the Egyptian Media. In addition to that, Orascom Investment is 1.79 times more volatile than Egyptian Media Production. It trades about -0.12 of its total potential returns per unit of risk. Egyptian Media Production is currently generating about -0.06 per unit of volatility. If you would invest 2,250 in Egyptian Media Production on October 20, 2024 and sell it today you would lose (46.00) from holding Egyptian Media Production or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orascom Investment Holding vs. Egyptian Media Production
Performance |
| Timeline |
| Orascom Investment |
| Egyptian Media Production |
Orascom Investment and Egyptian Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orascom Investment and Egyptian Media
The main advantage of trading using opposite Orascom Investment and Egyptian Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orascom Investment position performs unexpectedly, Egyptian Media 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 Egyptian Media will offset losses from the drop in Egyptian Media's long position.| Orascom Investment vs. El Ahli Investment | Orascom Investment vs. Misr Financial Investments | Orascom Investment vs. Orascom Construction PLC | Orascom Investment vs. General Silos Storage |
| Egyptian Media vs. Misr National Steel | Egyptian Media vs. Ezz Steel | Egyptian Media vs. AJWA for Food | Egyptian Media vs. Paint Chemicals Industries |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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