Correlation Between Misr Hotels and Saudi Egyptian
Can any of the company-specific risk be diversified away by investing in both Misr Hotels and Saudi Egyptian 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 Misr Hotels and Saudi Egyptian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Hotels and Saudi Egyptian Investment, you can compare the effects of market volatilities on Misr Hotels and Saudi Egyptian 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 Misr Hotels with a short position of Saudi Egyptian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Hotels and Saudi Egyptian.
Diversification Opportunities for Misr Hotels and Saudi Egyptian
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Misr and Saudi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Misr Hotels and Saudi Egyptian Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saudi Egyptian Investment and Misr Hotels 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 Misr Hotels are associated (or correlated) with Saudi Egyptian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saudi Egyptian Investment has no effect on the direction of Misr Hotels i.e., Misr Hotels and Saudi Egyptian go up and down completely randomly.
Pair Corralation between Misr Hotels and Saudi Egyptian
Assuming the 90 days trading horizon Misr Hotels is expected to under-perform the Saudi Egyptian. But the stock apears to be less risky and, when comparing its historical volatility, Misr Hotels is 2.01 times less risky than Saudi Egyptian. The stock trades about -0.02 of its potential returns per unit of risk. The Saudi Egyptian Investment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,482 in Saudi Egyptian Investment on December 5, 2024 and sell it today you would lose (31.00) from holding Saudi Egyptian Investment or give up 0.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Misr Hotels vs. Saudi Egyptian Investment
Performance |
Timeline |
Misr Hotels |
Saudi Egyptian Investment |
Misr Hotels and Saudi Egyptian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Misr Hotels and Saudi Egyptian
The main advantage of trading using opposite Misr Hotels and Saudi Egyptian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Hotels position performs unexpectedly, Saudi Egyptian 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 Saudi Egyptian will offset losses from the drop in Saudi Egyptian's long position.Misr Hotels vs. Grand Investment Capital | Misr Hotels vs. Saudi Egyptian Investment | Misr Hotels vs. Cairo For Investment | Misr Hotels vs. El Ahli Investment |
Saudi Egyptian vs. Grand Investment Capital | Saudi Egyptian vs. General Silos Storage | Saudi Egyptian vs. ODIN Investments | Saudi Egyptian vs. Egyptian Transport |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
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 | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |