Correlation Between Cairo Communication and COMBA TELECOM
Can any of the company-specific risk be diversified away by investing in both Cairo Communication and COMBA TELECOM 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 Cairo Communication and COMBA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cairo Communication SpA and COMBA TELECOM SYST, you can compare the effects of market volatilities on Cairo Communication and COMBA TELECOM 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 Cairo Communication with a short position of COMBA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Communication and COMBA TELECOM.
Diversification Opportunities for Cairo Communication and COMBA TELECOM
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cairo and COMBA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Communication SpA and COMBA TELECOM SYST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMBA TELECOM SYST and Cairo Communication 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 Cairo Communication SpA are associated (or correlated) with COMBA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMBA TELECOM SYST has no effect on the direction of Cairo Communication i.e., Cairo Communication and COMBA TELECOM go up and down completely randomly.
Pair Corralation between Cairo Communication and COMBA TELECOM
Assuming the 90 days trading horizon Cairo Communication SpA is expected to under-perform the COMBA TELECOM. But the stock apears to be less risky and, when comparing its historical volatility, Cairo Communication SpA is 1.54 times less risky than COMBA TELECOM. The stock trades about -0.01 of its potential returns per unit of risk. The COMBA TELECOM SYST is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 12.00 in COMBA TELECOM SYST on October 11, 2024 and sell it today you would earn a total of 2.00 from holding COMBA TELECOM SYST or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairo Communication SpA vs. COMBA TELECOM SYST
Performance |
| Timeline |
| Cairo Communication SpA |
| COMBA TELECOM SYST |
Cairo Communication and COMBA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Communication and COMBA TELECOM
The main advantage of trading using opposite Cairo Communication and COMBA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Communication position performs unexpectedly, COMBA TELECOM 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 COMBA TELECOM will offset losses from the drop in COMBA TELECOM's long position.| Cairo Communication vs. International Consolidated Airlines | Cairo Communication vs. Aegean Airlines SA | Cairo Communication vs. Ares Management Corp | Cairo Communication vs. Coor Service Management |
| COMBA TELECOM vs. Ribbon Communications | COMBA TELECOM vs. SK TELECOM TDADR | COMBA TELECOM vs. Cairo Communication SpA | COMBA TELECOM vs. Charter Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |