Correlation Between EGX 33 and Arabia Investments
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By analyzing existing cross correlation between EGX 33 Shariah and Arabia Investments Holding, you can compare the effects of market volatilities on EGX 33 and Arabia Investments 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 Arabia Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Arabia Investments.
Diversification Opportunities for EGX 33 and Arabia Investments
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EGX and Arabia is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Arabia Investments Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arabia Investments 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 Arabia Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arabia Investments has no effect on the direction of EGX 33 i.e., EGX 33 and Arabia Investments go up and down completely randomly.
Pair Corralation between EGX 33 and Arabia Investments
Assuming the 90 days trading horizon EGX 33 Shariah is expected to under-perform the Arabia Investments. But the index apears to be less risky and, when comparing its historical volatility, EGX 33 Shariah is 1.97 times less risky than Arabia Investments. The index trades about -0.05 of its potential returns per unit of risk. The Arabia Investments Holding is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 50.00 in Arabia Investments Holding on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Arabia Investments Holding or generate 8.0% 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. Arabia Investments Holding
Performance |
| Timeline |
EGX 33 and Arabia Investments Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Arabia Investments Holding
Pair trading matchups for Arabia Investments
Pair Trading with EGX 33 and Arabia Investments
The main advantage of trading using opposite EGX 33 and Arabia Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Arabia Investments 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 Arabia Investments will offset losses from the drop in Arabia Investments' long position.| EGX 33 vs. Delta Insurance | EGX 33 vs. Odin for Investment | EGX 33 vs. Arabia Investments Holding | EGX 33 vs. Al Arafa Investment |
| Arabia Investments vs. Paint Chemicals Industries | Arabia Investments vs. Egyptians For Investment | Arabia Investments vs. Misr Oils Soap | Arabia Investments vs. Global Telecom Holding |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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