Correlation Between QALA For and Suez Canal

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

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

Diversification Opportunities for QALA For and Suez Canal

-0.13

Correlation Coefficient

QALA For  Suez Canal

Good diversification

The 3 months correlation between QALA and Suez is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding QALA For Financial and Suez Canal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suez Canal Bank and QALA For 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 QALA For Financial are associated (or correlated) with Suez Canal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suez Canal Bank has no effect on the direction of QALA For i.e., QALA For and Suez Canal go up and down completely randomly.

Pair Corralation between QALA For and Suez Canal

Assuming the 90 days trading horizon QALA For Financial is expected to under-perform the Suez Canal. But the stock apears to be less risky and, when comparing its historical volatility, QALA For Financial is 1.27 times less risky than Suez Canal. The stock trades about -0.08 of its potential returns per unit of risk. The Suez Canal Bank is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  2,393  in Suez Canal Bank on August 5, 2025 and sell it today you would earn a total of  1,546  from holding Suez Canal Bank or generate 64.61% return on investment over 90 days.

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

QALA For Financial  vs.  Suez Canal Bank

QALA For Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days QALA For Financial 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 December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Suez Canal Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Suez Canal Bank are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Suez Canal reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QALA For and Suez Canal

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

The idea behind QALA For Financial and Suez Canal Bank 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.