Correlation Between Cleopatra Hospital and Egyptians For

Can any of the company-specific risk be diversified away by investing in both Cleopatra Hospital and Egyptians For 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 Cleopatra Hospital and Egyptians For into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cleopatra Hospital and Egyptians For Investment, you can compare the effects of market volatilities on Cleopatra Hospital and Egyptians For 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 Cleopatra Hospital with a short position of Egyptians For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleopatra Hospital and Egyptians For.

Diversification Opportunities for Cleopatra Hospital and Egyptians For

0.32

Correlation Coefficient

Cleopatra Hospital  Egyptians For

Weak diversification

The 3 months correlation between Cleopatra and Egyptians is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cleopatra Hospital and Egyptians For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptians For Investment and Cleopatra Hospital 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 Cleopatra Hospital are associated (or correlated) with Egyptians For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptians For Investment has no effect on the direction of Cleopatra Hospital i.e., Cleopatra Hospital and Egyptians For go up and down completely randomly.

Pair Corralation between Cleopatra Hospital and Egyptians For

Assuming the 90 days trading horizon Cleopatra Hospital is expected to under-perform the Egyptians For. But the stock apears to be less risky and, when comparing its historical volatility, Cleopatra Hospital is 1.3 times less risky than Egyptians For. The stock trades about -0.1 of its potential returns per unit of risk. The Egyptians For Investment is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  21.00  in Egyptians For Investment on September 27, 2024 and sell it today you would earn a total of  3.00  from holding Egyptians For Investment or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cleopatra Hospital  vs.  Egyptians For Investment

Cleopatra Hospital

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cleopatra Hospital are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Cleopatra Hospital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Egyptians For Investment

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Egyptians For Investment are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Egyptians For reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cleopatra Hospital and Egyptians For

The main advantage of trading using opposite Cleopatra Hospital and Egyptians For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleopatra Hospital position performs unexpectedly, Egyptians For 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 Egyptians For will offset losses from the drop in Egyptians For's long position.

The idea behind Cleopatra Hospital and Egyptians For Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.