Correlation Between Misr Hotels and Juhayna Food
Can any of the company-specific risk be diversified away by investing in both Misr Hotels and Juhayna Food 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 Misr Hotels and Juhayna Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Hotels and Juhayna Food Industries, you can compare the effects of market volatilities on Misr Hotels and Juhayna Food 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 Misr Hotels with a short position of Juhayna Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Hotels and Juhayna Food.
Diversification Opportunities for Misr Hotels and Juhayna Food
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Misr and Juhayna is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Misr Hotels and Juhayna Food Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juhayna Food Industries and Misr Hotels 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 Misr Hotels are associated (or correlated) with Juhayna Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juhayna Food Industries has no effect on the direction of Misr Hotels i.e., Misr Hotels and Juhayna Food go up and down completely randomly.
Pair Corralation between Misr Hotels and Juhayna Food
Assuming the 90 days trading horizon Misr Hotels is expected to generate 1.84 times less return on investment than Juhayna Food. But when comparing it to its historical volatility, Misr Hotels is 1.18 times less risky than Juhayna Food. It trades about 0.06 of its potential returns per unit of risk. Juhayna Food Industries is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 |
Misr Hotels vs. Juhayna Food Industries
Performance |
| Timeline |
| Misr Hotels |
| Juhayna Food Industries |
Misr Hotels and Juhayna Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Hotels and Juhayna Food
The main advantage of trading using opposite Misr Hotels and Juhayna Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Hotels position performs unexpectedly, Juhayna Food 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 Juhayna Food will offset losses from the drop in Juhayna Food's long position.| Misr Hotels vs. Odin for Investment | Misr Hotels vs. The Arab Dairy | Misr Hotels vs. Sharkia National Food | Misr Hotels vs. Gadwa For Industrial |
| Juhayna Food vs. ODIN Investments | Juhayna Food vs. Nozha International Hospital | Juhayna Food vs. Misr Financial Investments | Juhayna Food vs. Speed Medical |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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