Correlation Between Qatar Natl and Alexandria New
Can any of the company-specific risk be diversified away by investing in both Qatar Natl and Alexandria New 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 Qatar Natl and Alexandria New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qatar Natl Bank and Alexandria New Medical, you can compare the effects of market volatilities on Qatar Natl and Alexandria New 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 Qatar Natl with a short position of Alexandria New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qatar Natl and Alexandria New.
Diversification Opportunities for Qatar Natl and Alexandria New
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qatar and Alexandria is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Qatar Natl Bank and Alexandria New Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria New Medical and Qatar Natl 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 Qatar Natl Bank are associated (or correlated) with Alexandria New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria New Medical has no effect on the direction of Qatar Natl i.e., Qatar Natl and Alexandria New go up and down completely randomly.
Pair Corralation between Qatar Natl and Alexandria New
Assuming the 90 days trading horizon Qatar Natl Bank is expected to generate 0.83 times more return on investment than Alexandria New. However, Qatar Natl Bank is 1.2 times less risky than Alexandria New. It trades about 0.03 of its potential returns per unit of risk. Alexandria New Medical is currently generating about -0.32 per unit of risk. If you would invest 3,252 in Qatar Natl Bank on October 13, 2024 and sell it today you would earn a total of 16.00 from holding Qatar Natl Bank or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qatar Natl Bank vs. Alexandria New Medical
Performance |
| Timeline |
| Qatar Natl Bank |
| Alexandria New Medical |
Qatar Natl and Alexandria New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qatar Natl and Alexandria New
The main advantage of trading using opposite Qatar Natl and Alexandria New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qatar Natl position performs unexpectedly, Alexandria New 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 Alexandria New will offset losses from the drop in Alexandria New's long position.| Qatar Natl vs. Paint Chemicals Industries | Qatar Natl vs. Reacap Financial Investments | Qatar Natl vs. Egyptians For Investment | Qatar Natl vs. Misr Oils Soap |
| Alexandria New vs. Contact Financial Holding | Alexandria New vs. Qatar Natl Bank | Alexandria New vs. Mohandes Insurance | Alexandria New vs. Fawry For Banking |
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 Stocks Directory module to find actively traded stocks across global markets.
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