Correlation Between Global Telecom and Emaar Misr

Can any of the company-specific risk be diversified away by investing in both Global Telecom and Emaar Misr 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 Emaar Misr 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 Emaar Misr for, you can compare the effects of market volatilities on Global Telecom and Emaar Misr 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 Emaar Misr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and Emaar Misr.

Diversification Opportunities for Global Telecom and Emaar Misr

0.0

Correlation Coefficient

Global Telecom  Emaar Misr

Pay attention - limited upside

The 3 months correlation between Global and Emaar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and Emaar Misr for in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emaar Misr for 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 Emaar Misr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emaar Misr for has no effect on the direction of Global Telecom i.e., Global Telecom and Emaar Misr go up and down completely randomly.

Pair Corralation between Global Telecom and Emaar Misr

If you would invest  490.00  in Global Telecom Holding on September 25, 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	Flat
Strength	Insignificant
Accuracy	98.08%
Values	Daily Returns

Global Telecom Holding  vs.  Emaar Misr for

Global Telecom Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Telecom Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Global Telecom is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Emaar Misr for

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Emaar Misr for has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Global Telecom and Emaar Misr

The main advantage of trading using opposite Global Telecom and Emaar Misr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, Emaar Misr 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 Emaar Misr will offset losses from the drop in Emaar Misr's long position.

The idea behind Global Telecom Holding and Emaar Misr for pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.