Correlation Between EGX 33 and Al Tawfeek
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By analyzing existing cross correlation between EGX 33 Shariah and Al Tawfeek Leasing, you can compare the effects of market volatilities on EGX 33 and Al Tawfeek 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 Al Tawfeek. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Al Tawfeek.
Diversification Opportunities for EGX 33 and Al Tawfeek
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EGX and ATLC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Al Tawfeek Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Tawfeek Leasing 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 Al Tawfeek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Tawfeek Leasing has no effect on the direction of EGX 33 i.e., EGX 33 and Al Tawfeek go up and down completely randomly.
Pair Corralation between EGX 33 and Al Tawfeek
Assuming the 90 days trading horizon EGX 33 Shariah is expected to under-perform the Al Tawfeek. But the index apears to be less risky and, when comparing its historical volatility, EGX 33 Shariah is 2.78 times less risky than Al Tawfeek. The index trades about -0.08 of its potential returns per unit of risk. The Al Tawfeek Leasing is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 393.00 in Al Tawfeek Leasing on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Al Tawfeek Leasing or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGX 33 Shariah vs. Al Tawfeek Leasing
Performance |
| Timeline |
EGX 33 and Al Tawfeek Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Al Tawfeek Leasing
Pair trading matchups for Al Tawfeek
Pair Trading with EGX 33 and Al Tawfeek
The main advantage of trading using opposite EGX 33 and Al Tawfeek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Al Tawfeek 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 Al Tawfeek will offset losses from the drop in Al Tawfeek's long position.| EGX 33 vs. Misr Oils Soap | EGX 33 vs. Atlas For Investment | EGX 33 vs. Al Arafa Investment | EGX 33 vs. Arabia Investments Holding |
| Al Tawfeek vs. Egypt Aluminum | Al Tawfeek vs. Edita Food Industries | Al Tawfeek vs. Arab Aluminum | Al Tawfeek vs. The Arab Dairy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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