Correlation Between Global Telecom and Export Development
Can any of the company-specific risk be diversified away by investing in both Global Telecom and Export Development 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 Export Development 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 Export Development Bank, you can compare the effects of market volatilities on Global Telecom and Export Development 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 Export Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and Export Development.
Diversification Opportunities for Global Telecom and Export Development
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Export is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and Export Development Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Export Development Bank 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 Export Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Export Development Bank has no effect on the direction of Global Telecom i.e., Global Telecom and Export Development go up and down completely randomly.
Pair Corralation between Global Telecom and Export Development
If you would invest 1,730 in Export Development Bank on August 31, 2024 and sell it today you would earn a total of 72.00 from holding Export Development Bank or generate 4.16% 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. Export Development Bank
Performance |
| Timeline |
| Global Telecom Holding |
| Export Development Bank |
Global Telecom and Export Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Telecom and Export Development
The main advantage of trading using opposite Global Telecom and Export Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, Export Development 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 Export Development will offset losses from the drop in Export Development's long position.| Global Telecom vs. International Agricultural Products | Global Telecom vs. Dice Sport Casual | Global Telecom vs. ODIN Investments | Global Telecom vs. Egyptian Chemical Industries |
| Export Development vs. Paint Chemicals Industries | Export Development vs. Reacap Financial Investments | Export Development vs. Egyptians For Investment | Export Development 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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