Correlation Between Nozha International and ODIN Investments
Can any of the company-specific risk be diversified away by investing in both Nozha International and ODIN Investments 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 ODIN Investments 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 ODIN Investments, you can compare the effects of market volatilities on Nozha International and ODIN Investments 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 ODIN Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nozha International and ODIN Investments.
Diversification Opportunities for Nozha International and ODIN Investments
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nozha and ODIN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nozha International Hospital and ODIN Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODIN Investments 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 ODIN Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODIN Investments has no effect on the direction of Nozha International i.e., Nozha International and ODIN Investments go up and down completely randomly.
Pair Corralation between Nozha International and ODIN Investments
Assuming the 90 days trading horizon Nozha International Hospital is expected to under-perform the ODIN Investments. In addition to that, Nozha International is 1.32 times more volatile than ODIN Investments. It trades about -0.16 of its total potential returns per unit of risk. ODIN Investments is currently generating about -0.11 per unit of volatility. If you would invest 179.00 in ODIN Investments on November 4, 2024 and sell it today you would lose (6.00) from holding ODIN Investments or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nozha International Hospital vs. ODIN Investments
Performance |
| Timeline |
| Nozha International |
| ODIN Investments |
Nozha International and ODIN Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nozha International and ODIN Investments
The main advantage of trading using opposite Nozha International and ODIN Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nozha International position performs unexpectedly, ODIN Investments 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 ODIN Investments will offset losses from the drop in ODIN Investments' long position.| Nozha International vs. Golden Textiles Clothes | Nozha International vs. Orascom Construction PLC | Nozha International vs. Taaleem Management Services | Nozha International vs. Telecom Egypt |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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