Correlation Between Misr Financial and Golden Textiles
Can any of the company-specific risk be diversified away by investing in both Misr Financial 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 Misr Financial and Golden Textiles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Misr Financial Investments and Golden Textiles Clothes, you can compare the effects of market volatilities on Misr Financial 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 Misr Financial with a short position of Golden Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Misr Financial and Golden Textiles.
Diversification Opportunities for Misr Financial and Golden Textiles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Misr and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Misr Financial Investments 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 Misr Financial 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 Misr Financial Investments 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 Misr Financial i.e., Misr Financial and Golden Textiles go up and down completely randomly.
Pair Corralation between Misr Financial and Golden Textiles
If you would invest 700.00 in Golden Textiles Clothes on September 19, 2024 and sell it today you would earn a total of 1,944 from holding Golden Textiles Clothes or generate 277.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 79.13% |
| Values | Daily Returns |
Misr Financial Investments vs. Golden Textiles Clothes
Performance |
| Timeline |
| Misr Financial Inves |
| Golden Textiles Clothes |
Misr Financial and Golden Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Misr Financial and Golden Textiles
The main advantage of trading using opposite Misr Financial and Golden Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Misr Financial 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.| Misr Financial vs. Paint Chemicals Industries | Misr Financial vs. Reacap Financial Investments | Misr Financial vs. Egyptians For Investment | Misr Financial vs. Misr Oils Soap |
| Golden Textiles vs. Paint Chemicals Industries | Golden Textiles vs. Reacap Financial Investments | Golden Textiles vs. Egyptians For Investment | Golden Textiles 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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