Correlation Between EGX 33 and Act Financial
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By analyzing existing cross correlation between EGX 33 Shariah and Act Financial, you can compare the effects of market volatilities on EGX 33 and Act Financial 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 EGX 33 with a short position of Act Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Act Financial.
Diversification Opportunities for EGX 33 and Act Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EGX and Act is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Act Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Act Financial and EGX 33 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 EGX 33 Shariah are associated (or correlated) with Act Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Act Financial has no effect on the direction of EGX 33 i.e., EGX 33 and Act Financial go up and down completely randomly.
Pair Corralation between EGX 33 and Act Financial
Assuming the 90 days trading horizon EGX 33 is expected to generate 14.41 times less return on investment than Act Financial. But when comparing it to its historical volatility, EGX 33 Shariah is 4.77 times less risky than Act Financial. It trades about 0.01 of its potential returns per unit of risk. Act Financial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Act Financial on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Act Financial or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGX 33 Shariah vs. Act Financial
Performance |
| Timeline |
EGX 33 and Act Financial Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Act Financial
Pair trading matchups for Act Financial
Pair Trading with EGX 33 and Act Financial
The main advantage of trading using opposite EGX 33 and Act Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Act Financial 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 Act Financial will offset losses from the drop in Act Financial's long position.| EGX 33 vs. Misr Oils Soap | EGX 33 vs. Dice Sport Casual | EGX 33 vs. Act Financial | EGX 33 vs. Arabian Food Industries |
| Act Financial vs. Paint Chemicals Industries | Act Financial vs. Reacap Financial Investments | Act Financial vs. Egyptians For Investment | Act Financial vs. Misr Oils Soap |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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