Correlation Between Sidi Kerir and Nozha International
Can any of the company-specific risk be diversified away by investing in both Sidi Kerir and Nozha International 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 Sidi Kerir and Nozha International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sidi Kerir Petrochemicals and Nozha International Hospital, you can compare the effects of market volatilities on Sidi Kerir and Nozha International 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 Sidi Kerir with a short position of Nozha International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidi Kerir and Nozha International.
Diversification Opportunities for Sidi Kerir and Nozha International
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sidi and Nozha is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sidi Kerir Petrochemicals and Nozha International Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nozha International and Sidi Kerir 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 Sidi Kerir Petrochemicals are associated (or correlated) with Nozha International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nozha International has no effect on the direction of Sidi Kerir i.e., Sidi Kerir and Nozha International go up and down completely randomly.
Pair Corralation between Sidi Kerir and Nozha International
Assuming the 90 days trading horizon Sidi Kerir Petrochemicals is expected to under-perform the Nozha International. But the stock apears to be less risky and, when comparing its historical volatility, Sidi Kerir Petrochemicals is 1.24 times less risky than Nozha International. The stock trades about -0.22 of its potential returns per unit of risk. The Nozha International Hospital is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 651.00 in Nozha International Hospital on August 28, 2024 and sell it today you would earn a total of 213.00 from holding Nozha International Hospital or generate 32.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidi Kerir Petrochemicals vs. Nozha International Hospital
Performance |
| Timeline |
| Sidi Kerir Petrochemicals |
| Nozha International |
Sidi Kerir and Nozha International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidi Kerir and Nozha International
The main advantage of trading using opposite Sidi Kerir and Nozha International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidi Kerir position performs unexpectedly, Nozha International 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 Nozha International will offset losses from the drop in Nozha International's long position.| Sidi Kerir vs. Egyptian Financial Industrial | Sidi Kerir vs. Gadwa For Industrial | Sidi Kerir vs. Golden Textiles Clothes | Sidi Kerir vs. Cairo For Investment |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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