Correlation Between Golden Textiles and Alexandria New
Can any of the company-specific risk be diversified away by investing in both Golden Textiles and Alexandria New 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 Golden Textiles and Alexandria New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Textiles Clothes and Alexandria New Medical, you can compare the effects of market volatilities on Golden Textiles and Alexandria New 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 Golden Textiles with a short position of Alexandria New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Textiles and Alexandria New.
Diversification Opportunities for Golden Textiles and Alexandria New
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Alexandria is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Golden Textiles Clothes and Alexandria New Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria New Medical and Golden Textiles 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 Golden Textiles Clothes are associated (or correlated) with Alexandria New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria New Medical has no effect on the direction of Golden Textiles i.e., Golden Textiles and Alexandria New go up and down completely randomly.
Pair Corralation between Golden Textiles and Alexandria New
Assuming the 90 days trading horizon Golden Textiles Clothes is expected to generate 0.71 times more return on investment than Alexandria New. However, Golden Textiles Clothes is 1.4 times less risky than Alexandria New. It trades about 0.08 of its potential returns per unit of risk. Alexandria New Medical is currently generating about 0.0 per unit of risk. If you would invest 991.00 in Golden Textiles Clothes on November 6, 2024 and sell it today you would earn a total of 1,706 from holding Golden Textiles Clothes or generate 172.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Golden Textiles Clothes vs. Alexandria New Medical
Performance |
| Timeline |
| Golden Textiles Clothes |
| Alexandria New Medical |
Golden Textiles and Alexandria New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Textiles and Alexandria New
The main advantage of trading using opposite Golden Textiles and Alexandria New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Textiles position performs unexpectedly, Alexandria New 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 Alexandria New will offset losses from the drop in Alexandria New's long position.| Golden Textiles vs. International Agricultural Products | Golden Textiles vs. Copper For Commercial | Golden Textiles vs. Egyptian Chemical Industries | Golden Textiles vs. Misr Oils Soap |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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