Correlation Between EGX 33 and Memphis Pharmaceuticals
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By analyzing existing cross correlation between EGX 33 Shariah and Memphis Pharmaceuticals, you can compare the effects of market volatilities on EGX 33 and Memphis Pharmaceuticals 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 Memphis Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Memphis Pharmaceuticals.
Diversification Opportunities for EGX 33 and Memphis Pharmaceuticals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EGX and Memphis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Memphis Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Memphis Pharmaceuticals 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 Memphis Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Memphis Pharmaceuticals has no effect on the direction of EGX 33 i.e., EGX 33 and Memphis Pharmaceuticals go up and down completely randomly.
Pair Corralation between EGX 33 and Memphis Pharmaceuticals
Assuming the 90 days trading horizon EGX 33 Shariah is expected to generate 0.17 times more return on investment than Memphis Pharmaceuticals. However, EGX 33 Shariah is 5.73 times less risky than Memphis Pharmaceuticals. It trades about 0.02 of its potential returns per unit of risk. Memphis Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 312,916 in EGX 33 Shariah on September 24, 2024 and sell it today you would earn a total of 502.00 from holding EGX 33 Shariah or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGX 33 Shariah vs. Memphis Pharmaceuticals
Performance |
| Timeline |
EGX 33 and Memphis Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Memphis Pharmaceuticals
Pair trading matchups for Memphis Pharmaceuticals
Pair Trading with EGX 33 and Memphis Pharmaceuticals
The main advantage of trading using opposite EGX 33 and Memphis Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Memphis Pharmaceuticals 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 Memphis Pharmaceuticals will offset losses from the drop in Memphis Pharmaceuticals' long position.| EGX 33 vs. Saudi Egyptian Investment | EGX 33 vs. B Investments Holding | EGX 33 vs. Cairo For Investment | EGX 33 vs. Arab Moltaka Investments |
| Memphis Pharmaceuticals vs. Egyptian Iron Steel | Memphis Pharmaceuticals vs. Speed Medical | Memphis Pharmaceuticals vs. Export Development Bank | Memphis Pharmaceuticals vs. Telecom Egypt |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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