Correlation Between Contact Financial and Cairo For
Can any of the company-specific risk be diversified away by investing in both Contact Financial and 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 Contact Financial and Cairo For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contact Financial Holding and Cairo For Investment, you can compare the effects of market volatilities on Contact Financial and 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 Contact Financial with a short position of Cairo For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contact Financial and Cairo For.
Diversification Opportunities for Contact Financial and Cairo For
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Contact and Cairo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Contact Financial Holding and Cairo For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo For Investment and Contact Financial 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 Contact Financial Holding are associated (or correlated) with 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 Cairo For Investment has no effect on the direction of Contact Financial i.e., Contact Financial and Cairo For go up and down completely randomly.
Pair Corralation between Contact Financial and Cairo For
Assuming the 90 days trading horizon Contact Financial Holding is expected to under-perform the Cairo For. In addition to that, Contact Financial is 1.03 times more volatile than Cairo For Investment. It trades about -0.07 of its total potential returns per unit of risk. Cairo For Investment is currently generating about 0.08 per unit of volatility. If you would invest 1,383 in Cairo For Investment on December 5, 2024 and sell it today you would earn a total of 96.00 from holding Cairo For Investment or generate 6.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Contact Financial Holding vs. Cairo For Investment
Performance |
Timeline |
Contact Financial Holding |
Cairo For Investment |
Contact Financial and Cairo For Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Contact Financial and Cairo For
The main advantage of trading using opposite Contact Financial and Cairo For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contact Financial position performs unexpectedly, 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 Cairo For will offset losses from the drop in Cairo For's long position.Contact Financial vs. Misr Hotels | Contact Financial vs. Al Arafa Investment | Contact Financial vs. Delta Insurance | Contact Financial vs. Natural Gas Mining |
Cairo For vs. Telecom Egypt | Cairo For vs. Paint Chemicals Industries | Cairo For vs. Dice Sport Casual | Cairo For vs. Sharkia National Food |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |