Correlation Between Global Telecom and Golden Textiles
Can any of the company-specific risk be diversified away by investing in both Global Telecom and Golden Textiles 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 Golden Textiles 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 Golden Textiles Clothes, you can compare the effects of market volatilities on Global Telecom and Golden Textiles 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 Golden Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and Golden Textiles.
Diversification Opportunities for Global Telecom and Golden Textiles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and Golden Textiles Clothes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Textiles Clothes 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 Golden Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Textiles Clothes has no effect on the direction of Global Telecom i.e., Global Telecom and Golden Textiles go up and down completely randomly.
Pair Corralation between Global Telecom and Golden Textiles
If you would invest 490.00 in Global Telecom Holding on November 28, 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 |
Global Telecom Holding vs. Golden Textiles Clothes
Performance |
| Timeline |
| Global Telecom Holding |
| Golden Textiles Clothes |
Global Telecom and Golden Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Telecom and Golden Textiles
The main advantage of trading using opposite Global Telecom and Golden Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, Golden Textiles 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 Golden Textiles will offset losses from the drop in Golden Textiles' long position.| Global Telecom vs. Telecom Egypt | Global Telecom vs. Arabian Food Industries | Global Telecom vs. Misr Oils Soap | Global Telecom vs. Misr Chemical Industries |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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