Correlation Between Global Telecom and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Global Telecom and Credit Agricole 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 Credit Agricole 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 Credit Agricole Egypt, you can compare the effects of market volatilities on Global Telecom and Credit Agricole 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 Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and Credit Agricole.
Diversification Opportunities for Global Telecom and Credit Agricole
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and Credit Agricole Egypt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole Egypt 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 Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole Egypt has no effect on the direction of Global Telecom i.e., Global Telecom and Credit Agricole go up and down completely randomly.
Pair Corralation between Global Telecom and Credit Agricole
If you would invest 2,120 in Credit Agricole Egypt on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Credit Agricole Egypt or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Telecom Holding vs. Credit Agricole Egypt
Performance |
| Timeline |
| Global Telecom Holding |
| Credit Agricole Egypt |
Global Telecom and Credit Agricole Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Telecom and Credit Agricole
The main advantage of trading using opposite Global Telecom and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's 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 |
| Credit Agricole vs. Paint Chemicals Industries | Credit Agricole vs. Egyptians For Investment | Credit Agricole vs. Misr Oils Soap | Credit Agricole 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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