Correlation Between El Ahli and Industrial Engineering
Can any of the company-specific risk be diversified away by investing in both El Ahli and Industrial Engineering 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 Industrial Engineering 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 Industrial Engineering Projects, you can compare the effects of market volatilities on El Ahli and Industrial Engineering 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 Industrial Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Ahli and Industrial Engineering.
Diversification Opportunities for El Ahli and Industrial Engineering
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFDI and Industrial is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding El Ahli Investment and Industrial Engineering Project in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Engineering 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 Industrial Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Engineering has no effect on the direction of El Ahli i.e., El Ahli and Industrial Engineering go up and down completely randomly.
Pair Corralation between El Ahli and Industrial Engineering
Assuming the 90 days trading horizon El Ahli Investment is expected to generate 0.9 times more return on investment than Industrial Engineering. However, El Ahli Investment is 1.11 times less risky than Industrial Engineering. It trades about 0.06 of its potential returns per unit of risk. Industrial Engineering Projects is currently generating about 0.05 per unit of risk. If you would invest 2,705 in El Ahli Investment on September 15, 2024 and sell it today you would earn a total of 417.00 from holding El Ahli Investment or generate 15.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
El Ahli Investment vs. Industrial Engineering Project
Performance |
Timeline |
El Ahli Investment |
Industrial Engineering |
El Ahli and Industrial Engineering Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with El Ahli and Industrial Engineering
The main advantage of trading using opposite El Ahli and Industrial Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Ahli position performs unexpectedly, Industrial Engineering 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 Industrial Engineering will offset losses from the drop in Industrial Engineering's long position.El Ahli vs. Paint Chemicals Industries | El Ahli vs. Reacap Financial Investments | El Ahli vs. Egyptians For Investment | El Ahli vs. Misr Oils Soap |
Industrial Engineering vs. Nozha International Hospital | Industrial Engineering vs. Egyptian Media Production | Industrial Engineering vs. Cairo For Investment | Industrial Engineering vs. El Ahli 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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