Correlation Between Qatar Natl and Egyptians For

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

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

Diversification Opportunities for Qatar Natl and Egyptians For

-0.42

Correlation Coefficient

Qatar Natl  Egyptians For

Very good diversification

The 3 months correlation between Qatar and Egyptians is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Qatar Natl Bank and Egyptians For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptians For Investment and Qatar Natl 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 Qatar Natl Bank are associated (or correlated) with Egyptians For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptians For Investment has no effect on the direction of Qatar Natl i.e., Qatar Natl and Egyptians For go up and down completely randomly.

Pair Corralation between Qatar Natl and Egyptians For

Assuming the 90 days trading horizon Qatar Natl Bank is expected to under-perform the Egyptians For. But the stock apears to be less risky and, when comparing its historical volatility, Qatar Natl Bank is 2.82 times less risky than Egyptians For. The stock trades about -0.11 of its potential returns per unit of risk. The Egyptians For Investment is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Egyptians For Investment on December 4, 2024 and sell it today you would earn a total of  5.00  from holding Egyptians For Investment or generate 20.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.0%
Values	Daily Returns

Qatar Natl Bank  vs.  Egyptians For Investment

Qatar Natl Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qatar Natl Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Egyptians For Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Egyptians For Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Egyptians For reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Qatar Natl and Egyptians For

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

The idea behind Qatar Natl Bank and Egyptians For Investment 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.