Correlation Between Speed Medical and Orascom Construction
Can any of the company-specific risk be diversified away by investing in both Speed Medical and Orascom Construction 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 Speed Medical and Orascom Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Speed Medical and Orascom Construction PLC, you can compare the effects of market volatilities on Speed Medical and Orascom Construction 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 Speed Medical with a short position of Orascom Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speed Medical and Orascom Construction.
Diversification Opportunities for Speed Medical and Orascom Construction
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Speed and Orascom is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Speed Medical and Orascom Construction PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orascom Construction PLC and Speed Medical 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 Speed Medical are associated (or correlated) with Orascom Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orascom Construction PLC has no effect on the direction of Speed Medical i.e., Speed Medical and Orascom Construction go up and down completely randomly.
Pair Corralation between Speed Medical and Orascom Construction
Assuming the 90 days trading horizon Speed Medical is expected to generate 6.83 times less return on investment than Orascom Construction. In addition to that, Speed Medical is 1.08 times more volatile than Orascom Construction PLC. It trades about 0.01 of its total potential returns per unit of risk. Orascom Construction PLC is currently generating about 0.1 per unit of volatility. If you would invest 10,015 in Orascom Construction PLC on October 24, 2024 and sell it today you would earn a total of 17,134 from holding Orascom Construction PLC or generate 171.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Speed Medical vs. Orascom Construction PLC
Performance |
| Timeline |
| Speed Medical |
| Orascom Construction PLC |
Speed Medical and Orascom Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speed Medical and Orascom Construction
The main advantage of trading using opposite Speed Medical and Orascom Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speed Medical position performs unexpectedly, Orascom Construction 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 Orascom Construction will offset losses from the drop in Orascom Construction's long position.| Speed Medical vs. Misr Financial Investments | Speed Medical vs. Union National Bank | Speed Medical vs. Housing Development Bank | Speed Medical vs. Mohandes Insurance |
| Orascom Construction vs. Nozha International Hospital | Orascom Construction vs. Sidi Kerir Petrochemicals | Orascom Construction vs. Orascom Financial Holding | Orascom Construction 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |