Correlation Between Arab Co and Global Telecom

Can any of the company-specific risk be diversified away by investing in both Arab Co 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 Arab Co and Global Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arab Co for and Global Telecom Holding, you can compare the effects of market volatilities on Arab Co 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 Arab Co with a short position of Global Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arab Co and Global Telecom.

Diversification Opportunities for Arab Co and Global Telecom

0.0

Correlation Coefficient

Arab Co  Global Telecom

Pay attention - limited upside

The 3 months correlation between Arab and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arab Co for 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 Arab Co 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 Arab Co for 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 Arab Co i.e., Arab Co and Global Telecom go up and down completely randomly.

Pair Corralation between Arab Co and Global Telecom

If you would invest  490.00  in Global Telecom Holding on April 24, 2025 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	97.78%
Values	Daily Returns

Arab Co for  vs.  Global Telecom Holding

Arab Co for

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arab Co for has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Arab Co is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Arab Co and Global Telecom

The main advantage of trading using opposite Arab Co and Global Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arab Co 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.

The idea behind Arab Co for and Global Telecom Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.