Correlation Between Quice Food and Bank Makramah
Can any of the company-specific risk be diversified away by investing in both Quice Food and Bank Makramah 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 Quice Food and Bank Makramah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quice Food Industries and Bank Makramah, you can compare the effects of market volatilities on Quice Food and Bank Makramah 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 Quice Food with a short position of Bank Makramah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quice Food and Bank Makramah.
Diversification Opportunities for Quice Food and Bank Makramah
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Quice and Bank is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Quice Food Industries and Bank Makramah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Makramah and Quice Food 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 Quice Food Industries are associated (or correlated) with Bank Makramah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Makramah has no effect on the direction of Quice Food i.e., Quice Food and Bank Makramah go up and down completely randomly.
Pair Corralation between Quice Food and Bank Makramah
Assuming the 90 days trading horizon Quice Food is expected to generate 4.71 times less return on investment than Bank Makramah. But when comparing it to its historical volatility, Quice Food Industries is 2.81 times less risky than Bank Makramah. It trades about 0.14 of its potential returns per unit of risk. Bank Makramah is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Bank Makramah on August 30, 2024 and sell it today you would earn a total of 73.00 from holding Bank Makramah or generate 37.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Quice Food Industries vs. Bank Makramah
Performance |
| Timeline |
| Quice Food Industries |
| Bank Makramah |
Quice Food and Bank Makramah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quice Food and Bank Makramah
The main advantage of trading using opposite Quice Food and Bank Makramah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quice Food position performs unexpectedly, Bank Makramah 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 Bank Makramah will offset losses from the drop in Bank Makramah's long position.| Quice Food vs. Honda Atlas Cars | Quice Food vs. IBL HealthCare | Quice Food vs. AKD Hospitality | Quice Food vs. National Foods |
| Bank Makramah vs. Quice Food Industries | Bank Makramah vs. Hi Tech Lubricants | Bank Makramah vs. Wah Nobel Chemicals | Bank Makramah vs. Sardar Chemical 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |