Correlation Between Global Telecom and El Nasr
Can any of the company-specific risk be diversified away by investing in both Global Telecom and El Nasr 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 El Nasr 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 El Nasr Clothes, you can compare the effects of market volatilities on Global Telecom and El Nasr 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 El Nasr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and El Nasr.
Diversification Opportunities for Global Telecom and El Nasr
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and KABO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and El Nasr Clothes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Nasr 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 El Nasr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Nasr Clothes has no effect on the direction of Global Telecom i.e., Global Telecom and El Nasr go up and down completely randomly.
Pair Corralation between Global Telecom and El Nasr
If you would invest 185.00 in El Nasr Clothes on September 5, 2024 and sell it today you would earn a total of 209.00 from holding El Nasr Clothes or generate 112.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.58% |
| Values | Daily Returns |
Global Telecom Holding vs. El Nasr Clothes
Performance |
| Timeline |
| Global Telecom Holding |
| El Nasr Clothes |
Global Telecom and El Nasr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Telecom and El Nasr
The main advantage of trading using opposite Global Telecom and El Nasr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, El Nasr 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 El Nasr will offset losses from the drop in El Nasr's long position.| Global Telecom vs. Misr Oils Soap | Global Telecom vs. Qatar Natl Bank | Global Telecom vs. Orascom Construction PLC |
| El Nasr vs. Misr Oils Soap | El Nasr vs. Global Telecom Holding | El Nasr vs. Qatar Natl Bank | El Nasr vs. Orascom Construction PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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