Abu Dhabi securities exchanges daily share prices data of assets

as of 2014

I CHOOSE ABU DHABI ISLAMIC BANK 2014 and 2013

If the objective is to predict the future price, then it makes

sense to focus on price movements. Price movements usually
precede fundamental developments. By focusing on price
action, technicians are automatically focusing on the future.

1- draw line graphs of individual assets and report the price

behavior of assets over the selected time period
TOTAL ASSETS

YEAR

74335
86084
103160
111904

2011
2012
2013
2014

120000
100000
80000
YEAR

60000

TOTAL ASSETS

40000
20000
2014
4

2013
3

2012
2

2011
0
1

Report the price behavior of assets over the selected time period
31 December 2014 vs . 31 Decembers 2013
total assets of 31 december were AED 1119 billion representing
an increase of 8.5% from 103.2 billion at the end of 31 december
2013 so net customers financing grew about 18.2% to AED 73.0
billion from AED 61.7 billion at the end of December 2013
also customers deposits grew 12.3% AED 84.8 BILLION ,FROM aed
75.5 billion at end of 31 december2013.

2- calculate monthly assets returns and volatility (risk) through

standard

Risk management
ADIB continued its well established best practice approach in risk
management by having a dedicated team manage its legacy non
performing portfolio and as a result total non performing accounts
decreased to AED 3309.2 million . at the same time the ratio of total
non-performing assets to gross customer finacing assets decreased to
4.4% vs 8.3% at December 2013. given this reduction in the legacy nonperforming portfolio and notwithstanding the levels of collateral held ,
there has been a structural change in provision associated with the
restructured assets where the bank has taken the conservative change in
provision associated with the restructure assets .
This representation of the introduction of the new credit bureau and the
bank will maintain this approach until the sustainability of the
performance of the restructured and rescheduled and rescheduled
customers is confirmed

3- draw line graphs of monthly returns and volatility

Simple Rate of Return

40.00%
30.00%
Simple Rate of Return

20.00%
10.00%
0.00%
-10.00%
-20.00%

volatility
30.00%
20.00%
volatility

10.00%
0.00%
-10.00%
-20.00%
-30.00%

4- calculate correlation between each pair of different asset class

from monthly

Uses of Covariance

we need to look at the correlation. The correlation should therefore be used in

conjunction with the covariance, and is represented by this equation:

where cov (X,Y) = covariance between X and Y

X = standard deviation of X
Y = standard deviation of Y

Correlation = 0.997680769
See excel sheet

5- construct the appropriate portfolios using return assets volatility and

correlation analysis
The risk-return tradeoff is at the core of what asset allocation is all about.
It's easy for everyone to say that they want the highest possible return,
but simply choosing the assets with the highest "potential" isn't the
answer. What separates greedy and return-hungry investors from
successful ones is the ability to weigh the difference between risk and

return. Yes, investors with a higher risk tolerance should allocate more
money into stocks. But if you can't keep invested through the short-term
fluctuations of a bear market, you should cut your exposure to equities
30.00%
20.00%
10.00%
Axis Title
40.00%

20.00%

0.00%
0.00%
-20.00%
-10.00%
-20.00%
-30.00%

Axis Title

volatility