Correlation Between Saudi Egyptian and EGX 33
Specify exactly 2 symbols:
By analyzing existing cross correlation between Saudi Egyptian Investment and EGX 33 Shariah, you can compare the effects of market volatilities on Saudi Egyptian and EGX 33 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 Saudi Egyptian with a short position of EGX 33. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saudi Egyptian and EGX 33.
Diversification Opportunities for Saudi Egyptian and EGX 33
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saudi and EGX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Saudi Egyptian Investment and EGX 33 Shariah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGX 33 Shariah and Saudi Egyptian 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 Saudi Egyptian Investment are associated (or correlated) with EGX 33. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGX 33 Shariah has no effect on the direction of Saudi Egyptian i.e., Saudi Egyptian and EGX 33 go up and down completely randomly.
Pair Corralation between Saudi Egyptian and EGX 33
Assuming the 90 days trading horizon Saudi Egyptian Investment is expected to under-perform the EGX 33. In addition to that, Saudi Egyptian is 2.76 times more volatile than EGX 33 Shariah. It trades about -0.15 of its total potential returns per unit of risk. EGX 33 Shariah is currently generating about -0.22 per unit of volatility. If you would invest 327,907 in EGX 33 Shariah on September 12, 2024 and sell it today you would lose (10,672) from holding EGX 33 Shariah or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Saudi Egyptian Investment vs. EGX 33 Shariah
Performance |
| Timeline |
Saudi Egyptian and EGX 33 Volatility Contrast
Predicted Return Density |
| Returns |
Saudi Egyptian Investment
Pair trading matchups for Saudi Egyptian
EGX 33 Shariah
Pair trading matchups for EGX 33
Pair Trading with Saudi Egyptian and EGX 33
The main advantage of trading using opposite Saudi Egyptian and EGX 33 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saudi Egyptian position performs unexpectedly, EGX 33 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 EGX 33 will offset losses from the drop in EGX 33's long position.| Saudi Egyptian vs. Taaleem Management Services | Saudi Egyptian vs. Nile City Investment | Saudi Egyptian vs. Odin for Investment | Saudi Egyptian vs. QALA For Financial |
| EGX 33 vs. Egyptian Transport | EGX 33 vs. Mohandes Insurance | EGX 33 vs. Dice Sport Casual | EGX 33 vs. Cleopatra Hospital |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |