Correlation Between El Ahli and Inter-Cairo For

Can any of the company-specific risk be diversified away by investing in both El Ahli and Inter-Cairo For 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 El Ahli and Inter-Cairo For into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between El Ahli Investment and Inter Cairo For Aluminum, you can compare the effects of market volatilities on El Ahli and Inter-Cairo For 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 El Ahli with a short position of Inter-Cairo For. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Inter-Cairo For.

Diversification Opportunities for El Ahli and Inter-Cairo For

0.0

Correlation Coefficient

El Ahli  Inter-Cairo For

Pay attention - limited upside

The 3 months correlation between AFDI and Inter-Cairo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Inter Cairo For Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Cairo For and El Ahli 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 El Ahli Investment are associated (or correlated) with Inter-Cairo For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Cairo For has no effect on the direction of El Ahli i.e., El Ahli and Inter-Cairo For go up and down completely randomly.

Pair Corralation between El Ahli and Inter-Cairo For

If you would invest  100.00  in Inter Cairo For Aluminum on December 22, 2024 and sell it today you would earn a total of  0.00  from holding Inter Cairo For Aluminum or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

El Ahli Investment  vs.  Inter Cairo For Aluminum

El Ahli Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days El Ahli Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Inter Cairo For

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inter Cairo For Aluminum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Inter-Cairo For is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with El Ahli and Inter-Cairo For

The main advantage of trading using opposite El Ahli and Inter-Cairo For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Inter-Cairo For 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 Inter-Cairo For will offset losses from the drop in Inter-Cairo For's long position.

The idea behind El Ahli Investment and Inter Cairo For Aluminum pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.