Correlation Between Cleopatra Hospital and Misr Hotels
Can any of the company-specific risk be diversified away by investing in both Cleopatra Hospital and Misr Hotels 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 Cleopatra Hospital and Misr Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleopatra Hospital and Misr Hotels, you can compare the effects of market volatilities on Cleopatra Hospital and Misr Hotels 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 Cleopatra Hospital with a short position of Misr Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleopatra Hospital and Misr Hotels.
Diversification Opportunities for Cleopatra Hospital and Misr Hotels
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cleopatra and Misr is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cleopatra Hospital and Misr Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Misr Hotels and Cleopatra Hospital 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 Cleopatra Hospital are associated (or correlated) with Misr Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Misr Hotels has no effect on the direction of Cleopatra Hospital i.e., Cleopatra Hospital and Misr Hotels go up and down completely randomly.
Pair Corralation between Cleopatra Hospital and Misr Hotels
Assuming the 90 days trading horizon Cleopatra Hospital is expected to generate 0.43 times more return on investment than Misr Hotels. However, Cleopatra Hospital is 2.31 times less risky than Misr Hotels. It trades about 0.08 of its potential returns per unit of risk. Misr Hotels is currently generating about 0.0 per unit of risk. If you would invest 440.00 in Cleopatra Hospital on September 2, 2024 and sell it today you would earn a total of 331.00 from holding Cleopatra Hospital or generate 75.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleopatra Hospital vs. Misr Hotels
Performance |
| Timeline |
| Cleopatra Hospital |
| Misr Hotels |
Cleopatra Hospital and Misr Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleopatra Hospital and Misr Hotels
The main advantage of trading using opposite Cleopatra Hospital and Misr Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleopatra Hospital position performs unexpectedly, Misr Hotels 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 Hotels will offset losses from the drop in Misr Hotels' long position.| Cleopatra Hospital vs. Egyptians For Investment | Cleopatra Hospital vs. Misr Oils Soap | Cleopatra Hospital vs. Global Telecom Holding | Cleopatra Hospital vs. Qatar Natl Bank |
| Misr Hotels vs. Egyptians For Investment | Misr Hotels vs. Misr Oils Soap | Misr Hotels vs. Global Telecom Holding | Misr Hotels vs. Qatar Natl Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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