Correlation Between Orascom Investment and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Orascom Investment 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 Orascom Investment and Medical Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orascom Investment Holding and Medical Packaging, you can compare the effects of market volatilities on Orascom Investment 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 Orascom Investment with a short position of Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orascom Investment and Medical Packaging.
Diversification Opportunities for Orascom Investment and Medical Packaging
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Orascom and Medical is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Orascom Investment Holding and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging and Orascom Investment 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 Orascom Investment Holding 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 Orascom Investment i.e., Orascom Investment and Medical Packaging go up and down completely randomly.
Pair Corralation between Orascom Investment and Medical Packaging
Assuming the 90 days trading horizon Orascom Investment Holding is expected to generate 1.39 times more return on investment than Medical Packaging. However, Orascom Investment is 1.39 times more volatile than Medical Packaging. It trades about 0.01 of its potential returns per unit of risk. Medical Packaging is currently generating about -0.22 per unit of risk. If you would invest 42.00 in Orascom Investment Holding on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Orascom Investment Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Orascom Investment Holding vs. Medical Packaging
Performance |
| Timeline |
| Orascom Investment |
| Medical Packaging |
Orascom Investment and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orascom Investment and Medical Packaging
The main advantage of trading using opposite Orascom Investment and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orascom Investment 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.| Orascom Investment vs. Zahraa Maadi Investment | Orascom Investment vs. Egyptians For Investment | Orascom Investment vs. Nile City Investment | Orascom Investment vs. Telecom Egypt |
| Medical Packaging vs. Misr Oils Soap | Medical Packaging vs. Global Telecom Holding | Medical Packaging vs. Qatar Natl Bank | Medical Packaging vs. Al Tawfeek Leasing |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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