Correlation Between Qatar Natl and Nile City
Can any of the company-specific risk be diversified away by investing in both Qatar Natl and Nile City 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 Nile City 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 Nile City Investment, you can compare the effects of market volatilities on Qatar Natl and Nile City 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 Nile City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qatar Natl and Nile City.
Diversification Opportunities for Qatar Natl and Nile City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Qatar and Nile is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Qatar Natl Bank and Nile City Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nile City Investment 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 Nile City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nile City Investment has no effect on the direction of Qatar Natl i.e., Qatar Natl and Nile City go up and down completely randomly.
Pair Corralation between Qatar Natl and Nile City
If you would invest 3,228 in Qatar Natl Bank on September 2, 2024 and sell it today you would earn a total of 242.00 from holding Qatar Natl Bank or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qatar Natl Bank vs. Nile City Investment
Performance |
| Timeline |
| Qatar Natl Bank |
| Nile City Investment |
Qatar Natl and Nile City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qatar Natl and Nile City
The main advantage of trading using opposite Qatar Natl and Nile City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qatar Natl position performs unexpectedly, Nile City 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 Nile City will offset losses from the drop in Nile City's long position.| Qatar Natl vs. Egyptians For Investment | Qatar Natl vs. Misr Oils Soap | Qatar Natl vs. Global Telecom Holding | Qatar Natl vs. Orascom Construction PLC |
| Nile City vs. Qatar Natl Bank | Nile City vs. Faisal Islamic Bank | Nile City vs. QALA For Financial | Nile City vs. Act Financial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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