Correlation Between Juhayna Food and Fawry For
Can any of the company-specific risk be diversified away by investing in both Juhayna Food and Fawry For 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 Fawry For 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 Fawry For Banking, you can compare the effects of market volatilities on Juhayna Food and Fawry For 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 Fawry For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juhayna Food and Fawry For.
Diversification Opportunities for Juhayna Food and Fawry For
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juhayna and Fawry is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Juhayna Food Industries and Fawry For Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fawry For Banking 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 Fawry For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fawry For Banking has no effect on the direction of Juhayna Food i.e., Juhayna Food and Fawry For go up and down completely randomly.
Pair Corralation between Juhayna Food and Fawry For
Assuming the 90 days trading horizon Juhayna Food Industries is expected to generate 1.2 times more return on investment than Fawry For. However, Juhayna Food is 1.2 times more volatile than Fawry For Banking. It trades about 0.12 of its potential returns per unit of risk. Fawry For Banking is currently generating about 0.07 per unit of risk. If you would invest 816.00 in Juhayna Food Industries on December 4, 2024 and sell it today you would earn a total of 2,771 from holding Juhayna Food Industries or generate 339.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juhayna Food Industries vs. Fawry For Banking
Performance |
| Timeline |
| Juhayna Food Industries |
| Fawry For Banking |
Juhayna Food and Fawry For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juhayna Food and Fawry For
The main advantage of trading using opposite Juhayna Food and Fawry For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juhayna Food position performs unexpectedly, Fawry For 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 Fawry For will offset losses from the drop in Fawry For's long position.| Juhayna Food vs. Orascom Investment Holding | Juhayna Food vs. Global Telecom Holding | Juhayna Food vs. Industrial Engineering Projects | Juhayna Food vs. Telecom Egypt |
| Fawry For vs. Lotus For Agricultural | Fawry For vs. AJWA for Food | Fawry For vs. Al Arafa Investment | Fawry For vs. Arabia Investments Holding |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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