Correlation Between EGX 33 and Egypt Aluminum
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By analyzing existing cross correlation between EGX 33 Shariah and Egypt Aluminum, you can compare the effects of market volatilities on EGX 33 and Egypt Aluminum 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 Egypt Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Egypt Aluminum.
Diversification Opportunities for EGX 33 and Egypt Aluminum
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EGX and Egypt is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Egypt Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egypt Aluminum 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 Egypt Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egypt Aluminum has no effect on the direction of EGX 33 i.e., EGX 33 and Egypt Aluminum go up and down completely randomly.
Pair Corralation between EGX 33 and Egypt Aluminum
Assuming the 90 days trading horizon EGX 33 Shariah is expected to under-perform the Egypt Aluminum. But the index apears to be less risky and, when comparing its historical volatility, EGX 33 Shariah is 2.23 times less risky than Egypt Aluminum. The index trades about -0.09 of its potential returns per unit of risk. The Egypt Aluminum is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 11,117 in Egypt Aluminum on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Egypt Aluminum or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGX 33 Shariah vs. Egypt Aluminum
Performance |
| Timeline |
EGX 33 and Egypt Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Egypt Aluminum
Pair trading matchups for Egypt Aluminum
Pair Trading with EGX 33 and Egypt Aluminum
The main advantage of trading using opposite EGX 33 and Egypt Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Egypt Aluminum 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 Egypt Aluminum will offset losses from the drop in Egypt Aluminum's long position.| EGX 33 vs. Odin for Investment | EGX 33 vs. Atlas For Investment | EGX 33 vs. Nile City Investment | EGX 33 vs. Ismailia National Food |
| Egypt Aluminum vs. Egyptians For Investment | Egypt Aluminum vs. Misr Oils Soap | Egypt Aluminum vs. Global Telecom Holding | Egypt Aluminum vs. Qatar Natl Bank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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