Correlation Between Global Telecom and Reacap Financial

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

Diversification Opportunities for Global Telecom and Reacap Financial

0.0

Correlation Coefficient

Global Telecom  Reacap Financial

Pay attention - limited upside

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

Pair Corralation between Global Telecom and Reacap Financial

If you would invest  682.00  in Reacap Financial Investments on December 30, 2024 and sell it today you would earn a total of  49.00  from holding Reacap Financial Investments or generate 7.18% 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.  Reacap Financial Investments

Global Telecom Holding

Risk-Adjusted Performance

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.

Reacap Financial Inv

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Reacap Financial Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Reacap Financial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Global Telecom and Reacap Financial

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

The idea behind Global Telecom Holding and Reacap Financial Investments 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.