Correlation Between EGX 33 and Al Baraka
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By analyzing existing cross correlation between EGX 33 Shariah and Al Baraka Bank, you can compare the effects of market volatilities on EGX 33 and Al Baraka 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 Baraka. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Al Baraka.
Diversification Opportunities for EGX 33 and Al Baraka
Very poor diversification
The 3 months correlation between EGX and SAUD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Al Baraka Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Baraka Bank 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 Baraka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Baraka Bank has no effect on the direction of EGX 33 i.e., EGX 33 and Al Baraka go up and down completely randomly.
Pair Corralation between EGX 33 and Al Baraka
Assuming the 90 days trading horizon EGX 33 Shariah is expected to generate 0.54 times more return on investment than Al Baraka. However, EGX 33 Shariah is 1.87 times less risky than Al Baraka. It trades about 0.16 of its potential returns per unit of risk. Al Baraka Bank is currently generating about 0.06 per unit of risk. If you would invest 260,972 in EGX 33 Shariah on September 12, 2024 and sell it today you would earn a total of 56,361 from holding EGX 33 Shariah or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 25.19% |
| Values | Daily Returns |
EGX 33 Shariah vs. Al Baraka Bank
Performance |
| Timeline |
EGX 33 and Al Baraka Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Al Baraka Bank
Pair trading matchups for Al Baraka
Pair Trading with EGX 33 and Al Baraka
The main advantage of trading using opposite EGX 33 and Al Baraka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 position performs unexpectedly, Al Baraka 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 Baraka will offset losses from the drop in Al Baraka's long position.| EGX 33 vs. Egyptian Transport | EGX 33 vs. Mohandes Insurance | EGX 33 vs. Dice Sport Casual | EGX 33 vs. Cleopatra Hospital |
| Al Baraka vs. Paint Chemicals Industries | Al Baraka vs. Reacap Financial Investments | Al Baraka vs. Egyptians For Investment | Al Baraka vs. Misr Oils Soap |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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