Correlation Between Juhayna Food and Misr Hotels
Can any of the company-specific risk be diversified away by investing in both Juhayna Food 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 Juhayna Food and Misr Hotels 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 Misr Hotels, you can compare the effects of market volatilities on Juhayna Food 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 Juhayna Food with a short position of Misr Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juhayna Food and Misr Hotels.
Diversification Opportunities for Juhayna Food and Misr Hotels
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juhayna and Misr is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Juhayna Food Industries and Misr Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Misr Hotels 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 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 Juhayna Food i.e., Juhayna Food and Misr Hotels go up and down completely randomly.
Pair Corralation between Juhayna Food and Misr Hotels
Assuming the 90 days trading horizon Juhayna Food Industries is expected to generate 1.18 times more return on investment than Misr Hotels. However, Juhayna Food is 1.18 times more volatile than Misr Hotels. It trades about 0.09 of its potential returns per unit of risk. Misr Hotels is currently generating about 0.06 per unit of risk. If you would invest 3,544 in Juhayna Food Industries on November 28, 2024 and sell it today you would earn a total of 141.00 from holding Juhayna Food Industries or generate 3.98% 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. Misr Hotels
Performance |
| Timeline |
| Juhayna Food Industries |
| Misr Hotels |
Juhayna Food and Misr Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juhayna Food and Misr Hotels
The main advantage of trading using opposite Juhayna Food and Misr Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juhayna Food 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.| Juhayna Food vs. ODIN Investments | Juhayna Food vs. Nozha International Hospital | Juhayna Food vs. Misr Financial Investments | Juhayna Food vs. Speed Medical |
| Misr Hotels vs. Odin for Investment | Misr Hotels vs. The Arab Dairy | Misr Hotels vs. Sharkia National Food | Misr Hotels vs. Gadwa For Industrial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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