Correlation Between EGX 33 and Palm Hills
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By analyzing existing cross correlation between EGX 33 Shariah and Palm Hills Development, you can compare the effects of market volatilities on EGX 33 and Palm Hills 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 Palm Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Palm Hills.
Diversification Opportunities for EGX 33 and Palm Hills
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EGX and Palm is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Palm Hills Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palm Hills Development 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 Palm Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palm Hills Development has no effect on the direction of EGX 33 i.e., EGX 33 and Palm Hills go up and down completely randomly.
Pair Corralation between EGX 33 and Palm Hills
Assuming the 90 days trading horizon EGX 33 is expected to generate 1.71 times less return on investment than Palm Hills. But when comparing it to its historical volatility, EGX 33 Shariah is 2.87 times less risky than Palm Hills. It trades about 0.17 of its potential returns per unit of risk. Palm Hills Development is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 303.00 in Palm Hills Development on August 24, 2024 and sell it today you would earn a total of 255.00 from holding Palm Hills Development or generate 84.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.13% |
| Values | Daily Returns |
EGX 33 Shariah vs. Palm Hills Development
Performance |
| Timeline |
EGX 33 and Palm Hills Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Palm Hills Development
Pair trading matchups for Palm Hills
Pair Trading with EGX 33 and Palm Hills
The main advantage of trading using opposite EGX 33 and Palm Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Palm Hills 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 Palm Hills will offset losses from the drop in Palm Hills' long position.| EGX 33 vs. Misr Financial Investments | EGX 33 vs. Pyramisa Hotels | EGX 33 vs. Golden Textiles Clothes | EGX 33 vs. Egyptian Financial Industrial |
| Palm Hills vs. Misr Financial Investments | Palm Hills vs. Juhayna Food Industries | Palm Hills vs. Zahraa Maadi Investment | Palm Hills vs. Egyptians For Investment |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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