Correlation Between National Bank and Fawry For

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

By analyzing existing cross correlation between National Bank and Fawry For Banking, you can compare the effects of market volatilities on National Bank and Fawry 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 National Bank with a short position of Fawry For. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Fawry For.

Diversification Opportunities for National Bank and Fawry For

0.0

Correlation Coefficient

National Bank  Fawry For

Pay attention - limited upside

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

Pair Corralation between National Bank and Fawry For

If you would invest  770.00  in Fawry For Banking on September 15, 2024 and sell it today you would earn a total of  110.00  from holding Fawry For Banking or generate 14.29% return on investment over 90 days.

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

National Bank  vs.  Fawry For Banking

National Bank

Risk-Adjusted Performance

0 of 100

Very Weak

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

Fawry For Banking

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fawry For Banking are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Fawry For reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Bank and Fawry For

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

The idea behind National Bank and Fawry For Banking 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..