Correlation Between Global Telecom and Egyptian Financial
Can any of the company-specific risk be diversified away by investing in both Global Telecom and Egyptian Financial 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 Global Telecom and Egyptian Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Telecom Holding and Egyptian Financial Industrial, you can compare the effects of market volatilities on Global Telecom and Egyptian Financial 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 Global Telecom with a short position of Egyptian Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and Egyptian Financial.
Diversification Opportunities for Global Telecom and Egyptian Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Egyptian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and Egyptian Financial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egyptian Financial and Global Telecom 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 Global Telecom Holding are associated (or correlated) with Egyptian Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egyptian Financial has no effect on the direction of Global Telecom i.e., Global Telecom and Egyptian Financial go up and down completely randomly.
Pair Corralation between Global Telecom and Egyptian Financial
If you would invest 3,235 in Egyptian Financial Industrial on September 24, 2024 and sell it today you would earn a total of 11,790 from holding Egyptian Financial Industrial or generate 364.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 76.42% |
Values | Daily Returns |
Global Telecom Holding vs. Egyptian Financial Industrial
Performance |
Timeline |
Global Telecom Holding |
Egyptian Financial |
Global Telecom and Egyptian Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Telecom and Egyptian Financial
The main advantage of trading using opposite Global Telecom and Egyptian Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, Egyptian Financial 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 Egyptian Financial will offset losses from the drop in Egyptian Financial's long position.Global Telecom vs. Memphis Pharmaceuticals | Global Telecom vs. Paint Chemicals Industries | Global Telecom vs. Egyptians For Investment | Global Telecom vs. Al Tawfeek Leasing |
Egyptian Financial vs. Memphis Pharmaceuticals | Egyptian Financial vs. Paint Chemicals Industries | Egyptian Financial vs. Egyptians For Investment | Egyptian Financial vs. Global Telecom Holding |
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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