Correlation Between Faisal Islamic and Global Telecom
Can any of the company-specific risk be diversified away by investing in both Faisal Islamic and Global 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 Faisal Islamic and Global Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Faisal Islamic Bank and Global Telecom Holding, you can compare the effects of market volatilities on Faisal Islamic and Global 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 Faisal Islamic with a short position of Global Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Faisal Islamic and Global Telecom.
Diversification Opportunities for Faisal Islamic and Global Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Faisal and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Faisal Islamic Bank and Global Telecom Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Telecom Holding and Faisal Islamic 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 Faisal Islamic Bank are associated (or correlated) with Global Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Telecom Holding has no effect on the direction of Faisal Islamic i.e., Faisal Islamic and Global Telecom go up and down completely randomly.
Pair Corralation between Faisal Islamic and Global Telecom
If you would invest 490.00 in Global Telecom Holding on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Global Telecom Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Faisal Islamic Bank vs. Global Telecom Holding
Performance |
| Timeline |
| Faisal Islamic Bank |
| Global Telecom Holding |
Faisal Islamic and Global Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Faisal Islamic and Global Telecom
The main advantage of trading using opposite Faisal Islamic and Global Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Faisal Islamic position performs unexpectedly, Global 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 Global Telecom will offset losses from the drop in Global Telecom's long position.| Faisal Islamic vs. Paint Chemicals Industries | Faisal Islamic vs. Reacap Financial Investments | Faisal Islamic vs. Egyptians For Investment | Faisal Islamic vs. Misr Oils Soap |
| Global Telecom vs. Paint Chemicals Industries | Global Telecom vs. Reacap Financial Investments | Global Telecom vs. Egyptians For Investment | Global Telecom vs. Misr Oils Soap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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