Correlation Between Nile City and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Nile City 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 Nile City and Medical Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nile City Investment and Medical Packaging, you can compare the effects of market volatilities on Nile City 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 Nile City with a short position of Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nile City and Medical Packaging.
Diversification Opportunities for Nile City and Medical Packaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nile and Medical is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nile City Investment and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging and Nile City 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 Nile City Investment 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 Nile City i.e., Nile City and Medical Packaging go up and down completely randomly.
Pair Corralation between Nile City and Medical Packaging
If you would invest 34,428 in Nile City Investment on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Nile City Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nile City Investment vs. Medical Packaging
Performance |
| Timeline |
| Nile City Investment |
| Medical Packaging |
Nile City and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nile City and Medical Packaging
The main advantage of trading using opposite Nile City and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nile City 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.| Nile City vs. Union National Bank | Nile City vs. Fawry For Banking | Nile City vs. Credit Agricole Egypt | Nile City vs. Egypt Aluminum |
| Medical Packaging vs. Cairo Educational Services | Medical Packaging vs. Misr National Steel | Medical Packaging vs. Al Khair River | Medical Packaging vs. Inter Cairo For Aluminum |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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