Correlation Between Al Baraka and Misr Financial

Can any of the company-specific risk be diversified away by investing in both Al Baraka and Misr Financial 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 Al Baraka and Misr Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Al Baraka Bank and Misr Financial Investments, you can compare the effects of market volatilities on Al Baraka and Misr Financial 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 Al Baraka with a short position of Misr Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Baraka and Misr Financial.

Diversification Opportunities for Al Baraka and Misr Financial

0.0

Correlation Coefficient

Al Baraka  Misr Financial

Pay attention - limited upside

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

Pair Corralation between Al Baraka and Misr Financial

If you would invest  897.00  in Al Baraka Bank on October 27, 2024 and sell it today you would earn a total of  319.00  from holding Al Baraka Bank or generate 35.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.09%
Values	Daily Returns

Al Baraka Bank  vs.  Misr Financial Investments

Al Baraka Bank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Al Baraka Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Misr Financial Inves

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Al Baraka and Misr Financial

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

The idea behind Al Baraka Bank and Misr Financial Investments 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.