Correlation Between Global Telecom and B Investments
Can any of the company-specific risk be diversified away by investing in both Global Telecom and B Investments 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 Global Telecom and B Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Telecom Holding and B Investments Holding, you can compare the effects of market volatilities on Global Telecom and B Investments 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 Global Telecom with a short position of B Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and B Investments.
Diversification Opportunities for Global Telecom and B Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and BINV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and B Investments Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Investments Holding and Global Telecom 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 Global Telecom Holding are associated (or correlated) with B Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Investments Holding has no effect on the direction of Global Telecom i.e., Global Telecom and B Investments go up and down completely randomly.
Pair Corralation between Global Telecom and B Investments
If you would invest 1,167 in B Investments Holding on August 27, 2024 and sell it today you would earn a total of 1,336 from holding B Investments Holding or generate 114.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.28% |
| Values | Daily Returns |
Global Telecom Holding vs. B Investments Holding
Performance |
| Timeline |
| Global Telecom Holding |
| B Investments Holding |
Global Telecom and B Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Telecom and B Investments
The main advantage of trading using opposite Global Telecom and B Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, B Investments 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 B Investments will offset losses from the drop in B Investments' long position.| Global Telecom vs. Paint Chemicals Industries | Global Telecom vs. Egyptians For Investment | Global Telecom vs. Misr Oils Soap | Global Telecom vs. Al Tawfeek Leasing |
| B Investments vs. Al Tawfeek Leasing | B Investments vs. Nile City Investment | B Investments vs. Misr Chemical Industries | B Investments vs. Gadwa For Industrial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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