Correlation Between Golden Textiles and Medical Packaging
Can any of the company-specific risk be diversified away by investing in both Golden Textiles and Medical Packaging 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 Medical Packaging 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 Medical Packaging, you can compare the effects of market volatilities on Golden Textiles and Medical Packaging 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 Medical Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Textiles and Medical Packaging.
Diversification Opportunities for Golden Textiles and Medical Packaging
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Golden and Medical is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Golden Textiles Clothes and Medical Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Packaging 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 Medical Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Packaging has no effect on the direction of Golden Textiles i.e., Golden Textiles and Medical Packaging go up and down completely randomly.
Pair Corralation between Golden Textiles and Medical Packaging
Assuming the 90 days trading horizon Golden Textiles Clothes is expected to generate 0.95 times more return on investment than Medical Packaging. However, Golden Textiles Clothes is 1.05 times less risky than Medical Packaging. It trades about 0.1 of its potential returns per unit of risk. Medical Packaging is currently generating about 0.06 per unit of risk. If you would invest 718.00 in Golden Textiles Clothes on September 12, 2024 and sell it today you would earn a total of 1,786 from holding Golden Textiles Clothes or generate 248.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.81% |
| Values | Daily Returns |
Golden Textiles Clothes vs. Medical Packaging
Performance |
| Timeline |
| Golden Textiles Clothes |
| Medical Packaging |
Golden Textiles and Medical Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Textiles and Medical Packaging
The main advantage of trading using opposite Golden Textiles and Medical Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Textiles position performs unexpectedly, Medical Packaging 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 Medical Packaging will offset losses from the drop in Medical Packaging'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 |
| Medical Packaging vs. Paint Chemicals Industries | Medical Packaging vs. Reacap Financial Investments | Medical Packaging vs. Egyptians For Investment | Medical Packaging 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |