Correlation Between Egyptian Media and B Investments
Can any of the company-specific risk be diversified away by investing in both Egyptian Media and B Investments 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 Egyptian Media and B Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptian Media Production and B Investments Holding, you can compare the effects of market volatilities on Egyptian Media and B Investments 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 Egyptian Media with a short position of B Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptian Media and B Investments.
Diversification Opportunities for Egyptian Media and B Investments
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Egyptian and BINV is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Egyptian Media Production and B Investments Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Investments Holding and Egyptian Media 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 Egyptian Media Production are associated (or correlated) with B Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Investments Holding has no effect on the direction of Egyptian Media i.e., Egyptian Media and B Investments go up and down completely randomly.
Pair Corralation between Egyptian Media and B Investments
Assuming the 90 days trading horizon Egyptian Media is expected to generate 5.42 times less return on investment than B Investments. In addition to that, Egyptian Media is 1.86 times more volatile than B Investments Holding. It trades about 0.01 of its total potential returns per unit of risk. B Investments Holding is currently generating about 0.08 per unit of volatility. If you would invest 2,354 in B Investments Holding on October 7, 2024 and sell it today you would earn a total of 161.00 from holding B Investments Holding or generate 6.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Egyptian Media Production vs. B Investments Holding
Performance |
Timeline |
Egyptian Media Production |
B Investments Holding |
Egyptian Media and B Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Egyptian Media and B Investments
The main advantage of trading using opposite Egyptian Media and B Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptian Media position performs unexpectedly, B Investments 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 B Investments will offset losses from the drop in B Investments' long position.Egyptian Media vs. Act Financial | Egyptian Media vs. Orascom Financial Holding | Egyptian Media vs. Dice Sport Casual | Egyptian Media vs. International Agricultural Products |
B Investments vs. Egyptian Transport | B Investments vs. Dice Sport Casual | B Investments vs. Cairo Educational Services | B Investments vs. Nozha International Hospital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Money Managers Screen money managers from public funds and ETFs managed around the world |