Correlation Between Juhayna Food and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Juhayna Food and Medical Packaging 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 Medical Packaging 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 Medical Packaging, you can compare the effects of market volatilities on Juhayna Food and Medical Packaging 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 Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juhayna Food and Medical Packaging.
Diversification Opportunities for Juhayna Food and Medical Packaging
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juhayna and Medical is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Juhayna Food Industries and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging 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 Medical Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Packaging has no effect on the direction of Juhayna Food i.e., Juhayna Food and Medical Packaging go up and down completely randomly.
Pair Corralation between Juhayna Food and Medical Packaging
Assuming the 90 days trading horizon Juhayna Food Industries is expected to under-perform the Medical Packaging. But the stock apears to be less risky and, when comparing its historical volatility, Juhayna Food Industries is 1.19 times less risky than Medical Packaging. The stock trades about -0.39 of its potential returns per unit of risk. The Medical Packaging is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Medical Packaging on September 19, 2024 and sell it today you would earn a total of 7.00 from holding Medical Packaging or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juhayna Food Industries vs. Medical Packaging
Performance |
| Timeline |
| Juhayna Food Industries |
| Medical Packaging |
Juhayna Food and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juhayna Food and Medical Packaging
The main advantage of trading using opposite Juhayna Food and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juhayna Food position performs unexpectedly, Medical Packaging 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 Medical Packaging will offset losses from the drop in Medical Packaging'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 |
| Medical Packaging vs. Paint Chemicals Industries | Medical Packaging vs. Reacap Financial Investments | Medical Packaging vs. Egyptians For Investment | Medical Packaging 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |