Correlation Between Nozha International and International Company
Can any of the company-specific risk be diversified away by investing in both Nozha International and International Company 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 Nozha International and International Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nozha International Hospital and International Company For, you can compare the effects of market volatilities on Nozha International and International Company 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 Nozha International with a short position of International Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nozha International and International Company.
Diversification Opportunities for Nozha International and International Company
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nozha and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nozha International Hospital and International Company For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Company and Nozha International 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 Nozha International Hospital are associated (or correlated) with International Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Company has no effect on the direction of Nozha International i.e., Nozha International and International Company go up and down completely randomly.
Pair Corralation between Nozha International and International Company
Assuming the 90 days trading horizon Nozha International is expected to generate 12.89 times less return on investment than International Company. But when comparing it to its historical volatility, Nozha International Hospital is 8.19 times less risky than International Company. It trades about 0.03 of its potential returns per unit of risk. International Company For is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,100 in International Company For on September 19, 2024 and sell it today you would earn a total of 0.00 from holding International Company For or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Nozha International Hospital vs. International Company For
Performance |
| Timeline |
| Nozha International |
| International Company |
Nozha International and International Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nozha International and International Company
The main advantage of trading using opposite Nozha International and International Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nozha International position performs unexpectedly, International Company 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 International Company will offset losses from the drop in International Company's long position.| Nozha International vs. Paint Chemicals Industries | Nozha International vs. Reacap Financial Investments | Nozha International vs. Egyptians For Investment | Nozha International vs. Misr Oils Soap |
| International Company vs. El Nasr Clothes | International Company vs. Nozha International Hospital | International Company vs. Medical Packaging | International Company vs. Egypt 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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