Correlation Between Misr Hotels and National Bank
Can any of the company-specific risk be diversified away by investing in both Misr Hotels and National Bank 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 National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Hotels and National Bank, you can compare the effects of market volatilities on Misr Hotels and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Hotels and National Bank.
Diversification Opportunities for Misr Hotels and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Misr and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Misr Hotels and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Misr Hotels i.e., Misr Hotels and National Bank go up and down completely randomly.
Pair Corralation between Misr Hotels and National Bank
If you would invest 2,901 in Misr Hotels on November 28, 2024 and sell it today you would earn a total of 59.00 from holding Misr Hotels or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Misr Hotels vs. National Bank
Performance |
| Timeline |
| Misr Hotels |
| National Bank |
Misr Hotels and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Hotels and National Bank
The main advantage of trading using opposite Misr Hotels and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Hotels position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank'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 |
| National Bank vs. Pyramisa Hotels | National Bank vs. Arabia Investments Holding | National Bank vs. Nile City Investment | National Bank vs. Misr Financial Investments |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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