Correlation Between Juhayna Food and Cleopatra Hospital
Can any of the company-specific risk be diversified away by investing in both Juhayna Food and Cleopatra Hospital 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 Juhayna Food and Cleopatra Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juhayna Food Industries and Cleopatra Hospital, you can compare the effects of market volatilities on Juhayna Food and Cleopatra Hospital 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 Juhayna Food with a short position of Cleopatra Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juhayna Food and Cleopatra Hospital.
Diversification Opportunities for Juhayna Food and Cleopatra Hospital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juhayna and Cleopatra is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Juhayna Food Industries and Cleopatra Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleopatra Hospital and Juhayna Food 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 Juhayna Food Industries are associated (or correlated) with Cleopatra Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleopatra Hospital has no effect on the direction of Juhayna Food i.e., Juhayna Food and Cleopatra Hospital go up and down completely randomly.
Pair Corralation between Juhayna Food and Cleopatra Hospital
Assuming the 90 days trading horizon Juhayna Food Industries is expected to generate 1.44 times more return on investment than Cleopatra Hospital. However, Juhayna Food is 1.44 times more volatile than Cleopatra Hospital. It trades about 0.01 of its potential returns per unit of risk. Cleopatra Hospital is currently generating about -0.41 per unit of risk. If you would invest 3,120 in Juhayna Food Industries on January 22, 2025 and sell it today you would lose (10.00) from holding Juhayna Food Industries or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juhayna Food Industries vs. Cleopatra Hospital
Performance |
| Timeline |
| Juhayna Food Industries |
| Cleopatra Hospital |
Juhayna Food and Cleopatra Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juhayna Food and Cleopatra Hospital
The main advantage of trading using opposite Juhayna Food and Cleopatra Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juhayna Food position performs unexpectedly, Cleopatra Hospital 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 Cleopatra Hospital will offset losses from the drop in Cleopatra Hospital's long position.| Juhayna Food vs. Misr Financial Investments | Juhayna Food vs. Egyptian Chemical Industries | Juhayna Food vs. Grand Investment Capital | Juhayna Food vs. Odin for Investment |
| Cleopatra Hospital vs. Assiut Islamic Trading | Cleopatra Hospital vs. Arabia Investments Holding | Cleopatra Hospital vs. B Investments Holding | Cleopatra Hospital vs. Dice Sport Casual |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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