Correlation Between Golden Textiles and Egyptians For
Can any of the company-specific risk be diversified away by investing in both Golden Textiles and Egyptians For 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 Egyptians For 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 Egyptians For Investment, you can compare the effects of market volatilities on Golden Textiles and Egyptians For 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 Egyptians For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Textiles and Egyptians For.
Diversification Opportunities for Golden Textiles and Egyptians For
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Golden and Egyptians is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Golden Textiles Clothes and Egyptians For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptians For Investment 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 Egyptians For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptians For Investment has no effect on the direction of Golden Textiles i.e., Golden Textiles and Egyptians For go up and down completely randomly.
Pair Corralation between Golden Textiles and Egyptians For
Assuming the 90 days trading horizon Golden Textiles Clothes is expected to under-perform the Egyptians For. In addition to that, Golden Textiles is 1.07 times more volatile than Egyptians For Investment. It trades about -0.04 of its total potential returns per unit of risk. Egyptians For Investment is currently generating about 0.18 per unit of volatility. If you would invest 23.00 in Egyptians For Investment on September 19, 2024 and sell it today you would earn a total of 2.00 from holding Egyptians For Investment or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Golden Textiles Clothes vs. Egyptians For Investment
Performance |
| Timeline |
| Golden Textiles Clothes |
| Egyptians For Investment |
Golden Textiles and Egyptians For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Textiles and Egyptians For
The main advantage of trading using opposite Golden Textiles and Egyptians For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Textiles position performs unexpectedly, Egyptians For 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 Egyptians For will offset losses from the drop in Egyptians For's long position.| Golden Textiles vs. Paint Chemicals Industries | Golden Textiles vs. Reacap Financial Investments | Golden Textiles vs. Egyptians For Investment | Golden Textiles vs. Misr Oils Soap |
| Egyptians For vs. Paint Chemicals Industries | Egyptians For vs. Reacap Financial Investments | Egyptians For vs. Misr Oils Soap | Egyptians For vs. Ismailia Development and |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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