Correlation Between Paint Chemicals and Global Telecom
Can any of the company-specific risk be diversified away by investing in both Paint Chemicals and Global Telecom 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 Paint Chemicals and Global Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paint Chemicals Industries and Global Telecom Holding, you can compare the effects of market volatilities on Paint Chemicals and Global Telecom 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 Paint Chemicals with a short position of Global Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paint Chemicals and Global Telecom.
Diversification Opportunities for Paint Chemicals and Global Telecom
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Paint and Global is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Paint Chemicals Industries and Global Telecom Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Telecom Holding and Paint Chemicals 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 Paint Chemicals Industries are associated (or correlated) with Global Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Telecom Holding has no effect on the direction of Paint Chemicals i.e., Paint Chemicals and Global Telecom go up and down completely randomly.
Pair Corralation between Paint Chemicals and Global Telecom
If you would invest 490.00 in Global Telecom Holding on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Global Telecom Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paint Chemicals Industries vs. Global Telecom Holding
Performance |
| Timeline |
| Paint Chemicals Indu |
| Global Telecom Holding |
Paint Chemicals and Global Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paint Chemicals and Global Telecom
The main advantage of trading using opposite Paint Chemicals and Global Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paint Chemicals position performs unexpectedly, Global Telecom 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 Global Telecom will offset losses from the drop in Global Telecom's long position.| Paint Chemicals vs. Egyptians For Investment | Paint Chemicals vs. Misr Oils Soap | Paint Chemicals vs. Global Telecom Holding | Paint Chemicals vs. Al Tawfeek Leasing |
| Global Telecom vs. Paint Chemicals Industries | Global Telecom vs. Egyptians For Investment | Global Telecom vs. Misr Oils Soap | Global Telecom vs. Al Tawfeek Leasing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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