Correlation Between EGX 33 and Medical Packaging
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By analyzing existing cross correlation between EGX 33 Shariah and Medical Packaging, you can compare the effects of market volatilities on EGX 33 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 EGX 33 with a short position of Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGX 33 and Medical Packaging.
Diversification Opportunities for EGX 33 and Medical Packaging
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between EGX and Medical is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding EGX 33 Shariah and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging and EGX 33 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 EGX 33 Shariah 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 EGX 33 i.e., EGX 33 and Medical Packaging go up and down completely randomly.
Pair Corralation between EGX 33 and Medical Packaging
Assuming the 90 days trading horizon EGX 33 is expected to generate 1.39 times less return on investment than Medical Packaging. But when comparing it to its historical volatility, EGX 33 Shariah is 3.39 times less risky than Medical Packaging. It trades about 0.16 of its potential returns per unit of risk. Medical Packaging is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Medical Packaging on September 4, 2024 and sell it today you would earn a total of 54.00 from holding Medical Packaging or generate 76.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.75% |
| Values | Daily Returns |
EGX 33 Shariah vs. Medical Packaging
Performance |
| Timeline |
EGX 33 and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
EGX 33 Shariah
Pair trading matchups for EGX 33
Medical Packaging
Pair trading matchups for Medical Packaging
Pair Trading with EGX 33 and Medical Packaging
The main advantage of trading using opposite EGX 33 and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGX 33 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.| EGX 33 vs. El Ahli Investment | EGX 33 vs. Saudi Egyptian Investment | EGX 33 vs. Zahraa Maadi Investment | EGX 33 vs. Odin for Investment |
| Medical Packaging vs. Paint Chemicals Industries | Medical Packaging vs. Egyptians For Investment | Medical Packaging vs. Misr Oils Soap | Medical Packaging vs. Global Telecom Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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