Correlation Between Misr National and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Misr National 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 Misr National and Medical Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr National Steel and Medical Packaging, you can compare the effects of market volatilities on Misr National 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 Misr National with a short position of Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr National and Medical Packaging.
Diversification Opportunities for Misr National and Medical Packaging
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Misr and Medical is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Misr National Steel and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging and Misr National 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 Misr National Steel 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 Misr National i.e., Misr National and Medical Packaging go up and down completely randomly.
Pair Corralation between Misr National and Medical Packaging
Assuming the 90 days trading horizon Misr National Steel is expected to generate 1.42 times more return on investment than Medical Packaging. However, Misr National is 1.42 times more volatile than Medical Packaging. It trades about 0.14 of its potential returns per unit of risk. Medical Packaging is currently generating about -0.04 per unit of risk. If you would invest 539.00 in Misr National Steel on December 4, 2024 and sell it today you would earn a total of 112.00 from holding Misr National Steel or generate 20.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Misr National Steel vs. Medical Packaging
Performance |
Timeline |
Misr National Steel |
Medical Packaging |
Misr National and Medical Packaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Misr National and Medical Packaging
The main advantage of trading using opposite Misr National and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr National 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.Misr National vs. Orascom Construction PLC | Misr National vs. Union National Bank | Misr National vs. Industrial Engineering Projects | Misr National vs. Natural Gas Mining |
Medical Packaging vs. Al Khair River | Medical Packaging vs. Digitize for Investment | Medical Packaging vs. Misr Financial Investments | Medical Packaging vs. ODIN Investments |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
CEOs Directory Screen CEOs from public companies around the world | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |