Correlation Between Nozha International and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Nozha International 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 Nozha International and Medical Packaging 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 Medical Packaging, you can compare the effects of market volatilities on Nozha International 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 Nozha International with a short position of Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nozha International and Medical Packaging.
Diversification Opportunities for Nozha International and Medical Packaging
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nozha and Medical is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nozha International Hospital and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging 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 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 Nozha International i.e., Nozha International and Medical Packaging go up and down completely randomly.
Pair Corralation between Nozha International and Medical Packaging
Assuming the 90 days trading horizon Nozha International Hospital is expected to generate 1.36 times more return on investment than Medical Packaging. However, Nozha International is 1.36 times more volatile than Medical Packaging. It trades about 0.21 of its potential returns per unit of risk. Medical Packaging is currently generating about 0.13 per unit of risk. If you would invest 817.00 in Nozha International Hospital on September 19, 2024 and sell it today you would earn a total of 102.00 from holding Nozha International Hospital or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nozha International Hospital vs. Medical Packaging
Performance |
| Timeline |
| Nozha International |
| Medical Packaging |
Nozha International and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nozha International and Medical Packaging
The main advantage of trading using opposite Nozha International and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nozha International 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.| Nozha International vs. Paint Chemicals Industries | Nozha International vs. Reacap Financial Investments | Nozha International vs. Egyptians For Investment | Nozha International vs. Misr Oils Soap |
| Medical Packaging vs. Paint Chemicals Industries | Medical Packaging vs. Reacap Financial Investments | Medical Packaging vs. Egyptians For Investment | Medical Packaging 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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