Correlation Between Misr Financial and Misr National

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

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

Diversification Opportunities for Misr Financial and Misr National

0.0

Correlation Coefficient

Misr Financial  Misr National

Pay attention - limited upside

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

Pair Corralation between Misr Financial and Misr National

If you would invest  454.00  in Misr National Steel on September 17, 2024 and sell it today you would earn a total of  80.00  from holding Misr National Steel or generate 17.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.11%
Values	Daily Returns

Misr Financial Investments  vs.  Misr National Steel

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.

Misr National Steel

Risk-Adjusted Performance

9 of 100

OK

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

Pair Trading with Misr Financial and Misr National

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

The idea behind Misr Financial Investments and Misr National Steel 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..