Correlation Between Sidi Kerir and Alexandria New
Can any of the company-specific risk be diversified away by investing in both Sidi Kerir and Alexandria New at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sidi Kerir and Alexandria New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sidi Kerir Petrochemicals and Alexandria New Medical, you can compare the effects of market volatilities on Sidi Kerir and Alexandria New 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 Sidi Kerir with a short position of Alexandria New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidi Kerir and Alexandria New.
Diversification Opportunities for Sidi Kerir and Alexandria New
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sidi and Alexandria is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sidi Kerir Petrochemicals and Alexandria New Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria New Medical and Sidi Kerir 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 Sidi Kerir Petrochemicals are associated (or correlated) with Alexandria New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria New Medical has no effect on the direction of Sidi Kerir i.e., Sidi Kerir and Alexandria New go up and down completely randomly.
Pair Corralation between Sidi Kerir and Alexandria New
Assuming the 90 days trading horizon Sidi Kerir Petrochemicals is expected to generate 1.81 times more return on investment than Alexandria New. However, Sidi Kerir is 1.81 times more volatile than Alexandria New Medical. It trades about -0.09 of its potential returns per unit of risk. Alexandria New Medical is currently generating about -0.21 per unit of risk. If you would invest 2,030 in Sidi Kerir Petrochemicals on October 11, 2024 and sell it today you would lose (91.00) from holding Sidi Kerir Petrochemicals or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidi Kerir Petrochemicals vs. Alexandria New Medical
Performance |
| Timeline |
| Sidi Kerir Petrochemicals |
| Alexandria New Medical |
Sidi Kerir and Alexandria New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidi Kerir and Alexandria New
The main advantage of trading using opposite Sidi Kerir and Alexandria New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidi Kerir position performs unexpectedly, Alexandria New 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 Alexandria New will offset losses from the drop in Alexandria New's long position.| Sidi Kerir vs. Commercial International Bank Egypt | Sidi Kerir vs. QALA For Financial | Sidi Kerir vs. Mohandes Insurance | Sidi Kerir vs. Medical Packaging |
| Alexandria New vs. Sidi Kerir Petrochemicals | Alexandria New vs. Digitize for Investment | Alexandria New vs. Egyptian Chemical Industries | Alexandria New vs. Reacap Financial Investments |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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