Correlation Between Egyptians For and Golden Textiles
Can any of the company-specific risk be diversified away by investing in both Egyptians For and Golden Textiles 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 Egyptians For and Golden Textiles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egyptians For Investment and Golden Textiles Clothes, you can compare the effects of market volatilities on Egyptians For and Golden Textiles 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 Egyptians For with a short position of Golden Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egyptians For and Golden Textiles.
Diversification Opportunities for Egyptians For and Golden Textiles
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Egyptians and Golden is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Egyptians For Investment and Golden Textiles Clothes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Textiles Clothes and Egyptians For 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 Egyptians For Investment are associated (or correlated) with Golden Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Textiles Clothes has no effect on the direction of Egyptians For i.e., Egyptians For and Golden Textiles go up and down completely randomly.
Pair Corralation between Egyptians For and Golden Textiles
Assuming the 90 days trading horizon Egyptians For Investment is expected to generate 1.75 times more return on investment than Golden Textiles. However, Egyptians For is 1.75 times more volatile than Golden Textiles Clothes. It trades about 0.38 of its potential returns per unit of risk. Golden Textiles Clothes is currently generating about 0.05 per unit of risk. If you would invest 21.00 in Egyptians For Investment on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Egyptians For Investment or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egyptians For Investment vs. Golden Textiles Clothes
Performance |
| Timeline |
| Egyptians For Investment |
| Golden Textiles Clothes |
Egyptians For and Golden Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egyptians For and Golden Textiles
The main advantage of trading using opposite Egyptians For and Golden Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egyptians For position performs unexpectedly, Golden Textiles 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 Golden Textiles will offset losses from the drop in Golden Textiles' long position.| Egyptians For vs. Saudi Egyptian Investment | Egyptians For vs. B Investments Holding | Egyptians For vs. ODIN Investments | Egyptians For vs. Odin 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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