Correlation Between Global Telecom and National Bank
Can any of the company-specific risk be diversified away by investing in both Global Telecom and National Bank 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 National Bank 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 National Bank, you can compare the effects of market volatilities on Global Telecom and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Telecom and National Bank.
Diversification Opportunities for Global Telecom and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Telecom Holding and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Global Telecom i.e., Global Telecom and National Bank go up and down completely randomly.
Pair Corralation between Global Telecom and National Bank
If you would invest 1,300 in National Bank on October 26, 2024 and sell it today you would earn a total of 0.00 from holding National Bank or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global Telecom Holding vs. National Bank
Performance |
Timeline |
Global Telecom Holding |
National Bank |
Global Telecom and National Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Telecom and National Bank
The main advantage of trading using opposite Global Telecom and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Telecom position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.Global Telecom vs. Paint Chemicals Industries | Global Telecom vs. Reacap Financial Investments | Global Telecom vs. Egyptians For Investment | Global Telecom vs. Misr Oils Soap |
National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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