Correlation Between Juhayna Food and El Nasr
Can any of the company-specific risk be diversified away by investing in both Juhayna Food and El Nasr 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 El Nasr 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 El Nasr Clothes, you can compare the effects of market volatilities on Juhayna Food and El Nasr 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 El Nasr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juhayna Food and El Nasr.
Diversification Opportunities for Juhayna Food and El Nasr
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juhayna and KABO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Juhayna Food Industries and El Nasr Clothes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Nasr Clothes 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 El Nasr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Nasr Clothes has no effect on the direction of Juhayna Food i.e., Juhayna Food and El Nasr go up and down completely randomly.
Pair Corralation between Juhayna Food and El Nasr
Assuming the 90 days trading horizon Juhayna Food Industries is expected to under-perform the El Nasr. But the stock apears to be less risky and, when comparing its historical volatility, Juhayna Food Industries is 2.1 times less risky than El Nasr. The stock trades about -0.24 of its potential returns per unit of risk. The El Nasr Clothes is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 279.00 in El Nasr Clothes on September 20, 2024 and sell it today you would earn a total of 81.00 from holding El Nasr Clothes or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juhayna Food Industries vs. El Nasr Clothes
Performance |
| Timeline |
| Juhayna Food Industries |
| El Nasr Clothes |
Juhayna Food and El Nasr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juhayna Food and El Nasr
The main advantage of trading using opposite Juhayna Food and El Nasr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juhayna Food position performs unexpectedly, El Nasr 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 El Nasr will offset losses from the drop in El Nasr's long position.| Juhayna Food vs. Paint Chemicals Industries | Juhayna Food vs. Reacap Financial Investments | Juhayna Food vs. Egyptians For Investment | Juhayna Food vs. Misr Oils Soap |
| El Nasr vs. Paint Chemicals Industries | El Nasr vs. Reacap Financial Investments | El Nasr vs. Egyptians For Investment | El Nasr vs. Misr Oils Soap |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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