Correlation Between EGX 33 and Alexandria New
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By analyzing existing cross correlation between EGX 33 Shariah and Alexandria New Medical, you can compare the effects of market volatilities on EGX 33 and Alexandria New 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 Alexandria New. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Alexandria New.
Diversification Opportunities for EGX 33 and Alexandria New
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EGX and Alexandria is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Alexandria New Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria New Medical 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 Alexandria New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria New Medical has no effect on the direction of EGX 33 i.e., EGX 33 and Alexandria New go up and down completely randomly.
Pair Corralation between EGX 33 and Alexandria New
Assuming the 90 days trading horizon EGX 33 Shariah is expected to generate 0.21 times more return on investment than Alexandria New. However, EGX 33 Shariah is 4.75 times less risky than Alexandria New. It trades about 0.13 of its potential returns per unit of risk. Alexandria New Medical is currently generating about 0.01 per unit of risk. If you would invest 260,972 in EGX 33 Shariah on October 11, 2024 and sell it today you would earn a total of 51,074 from holding EGX 33 Shariah or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.5% |
| Values | Daily Returns |
EGX 33 Shariah vs. Alexandria New Medical
Performance |
| Timeline |
EGX 33 and Alexandria New Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Alexandria New Medical
Pair trading matchups for Alexandria New
Pair Trading with EGX 33 and Alexandria New
The main advantage of trading using opposite EGX 33 and Alexandria New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Alexandria New 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 Alexandria New will offset losses from the drop in Alexandria New's long position.| EGX 33 vs. Misr Hotels | EGX 33 vs. Egyptian Iron Steel | EGX 33 vs. Misr Oils Soap | EGX 33 vs. Assiut Islamic Trading |
| Alexandria New vs. Sidi Kerir Petrochemicals | Alexandria New vs. Digitize for Investment | Alexandria New vs. Egyptian Chemical Industries | Alexandria New vs. Reacap Financial Investments |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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