Correlation Between Telecom Egypt and Speed Medical
Can any of the company-specific risk be diversified away by investing in both Telecom Egypt and Speed Medical 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 Telecom Egypt and Speed Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecom Egypt and Speed Medical, you can compare the effects of market volatilities on Telecom Egypt and Speed Medical 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 Telecom Egypt with a short position of Speed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Egypt and Speed Medical.
Diversification Opportunities for Telecom Egypt and Speed Medical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Telecom and Speed is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Egypt and Speed Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speed Medical and Telecom Egypt 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 Telecom Egypt are associated (or correlated) with Speed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speed Medical has no effect on the direction of Telecom Egypt i.e., Telecom Egypt and Speed Medical go up and down completely randomly.
Pair Corralation between Telecom Egypt and Speed Medical
Assuming the 90 days trading horizon Telecom Egypt is expected to generate 0.68 times more return on investment than Speed Medical. However, Telecom Egypt is 1.48 times less risky than Speed Medical. It trades about 0.13 of its potential returns per unit of risk. Speed Medical is currently generating about 0.01 per unit of risk. If you would invest 3,240 in Telecom Egypt on September 24, 2024 and sell it today you would earn a total of 100.00 from holding Telecom Egypt or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Egypt vs. Speed Medical
Performance |
| Timeline |
| Telecom Egypt |
| Speed Medical |
Telecom Egypt and Speed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Egypt and Speed Medical
The main advantage of trading using opposite Telecom Egypt and Speed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Egypt position performs unexpectedly, Speed Medical 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 Speed Medical will offset losses from the drop in Speed Medical's long position.| Telecom Egypt vs. Memphis Pharmaceuticals | Telecom Egypt vs. Paint Chemicals Industries | Telecom Egypt vs. Egyptians For Investment | Telecom Egypt vs. Global Telecom Holding |
| Speed Medical vs. Memphis Pharmaceuticals | Speed Medical vs. Paint Chemicals Industries | Speed Medical vs. Egyptians For Investment | Speed Medical vs. Global Telecom Holding |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |