Correlation Between Nozha International and El Nasr
Can any of the company-specific risk be diversified away by investing in both Nozha International and El Nasr 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 El Nasr 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 El Nasr Clothes, you can compare the effects of market volatilities on Nozha International and El Nasr 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 El Nasr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nozha International and El Nasr.
Diversification Opportunities for Nozha International and El Nasr
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nozha and KABO is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nozha International Hospital and El Nasr Clothes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Nasr Clothes 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 El Nasr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Nasr Clothes has no effect on the direction of Nozha International i.e., Nozha International and El Nasr go up and down completely randomly.
Pair Corralation between Nozha International and El Nasr
Assuming the 90 days trading horizon Nozha International is expected to generate 2.49 times less return on investment than El Nasr. But when comparing it to its historical volatility, Nozha International Hospital is 1.4 times less risky than El Nasr. It trades about 0.21 of its potential returns per unit of risk. El Nasr Clothes is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 282.00 in El Nasr Clothes on September 19, 2024 and sell it today you would earn a total of 97.00 from holding El Nasr Clothes or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nozha International Hospital vs. El Nasr Clothes
Performance |
| Timeline |
| Nozha International |
| El Nasr Clothes |
Nozha International and El Nasr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nozha International and El Nasr
The main advantage of trading using opposite Nozha International and El Nasr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nozha International position performs unexpectedly, El Nasr 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 El Nasr will offset losses from the drop in El Nasr'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 |
| El Nasr vs. Paint Chemicals Industries | El Nasr vs. Reacap Financial Investments | El Nasr vs. Egyptians For Investment | El Nasr vs. Misr Oils Soap |
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.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |