Correlation Between AGMA LAHLOU and HIGHTECH PAYMENT
Can any of the company-specific risk be diversified away by investing in both AGMA LAHLOU and HIGHTECH PAYMENT 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 AGMA LAHLOU and HIGHTECH PAYMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGMA LAHLOU TAZI and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on AGMA LAHLOU and HIGHTECH PAYMENT 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 AGMA LAHLOU with a short position of HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGMA LAHLOU and HIGHTECH PAYMENT.
Diversification Opportunities for AGMA LAHLOU and HIGHTECH PAYMENT
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between AGMA and HIGHTECH is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding AGMA LAHLOU TAZI and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS and AGMA LAHLOU 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 AGMA LAHLOU TAZI are associated (or correlated) with HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of AGMA LAHLOU i.e., AGMA LAHLOU and HIGHTECH PAYMENT go up and down completely randomly.
Pair Corralation between AGMA LAHLOU and HIGHTECH PAYMENT
Assuming the 90 days trading horizon AGMA LAHLOU TAZI is expected to generate 63.3 times more return on investment than HIGHTECH PAYMENT. However, AGMA LAHLOU is 63.3 times more volatile than HIGHTECH PAYMENT SYSTEMS. It trades about 0.08 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about -0.02 per unit of risk. If you would invest 680,000 in AGMA LAHLOU TAZI on August 26, 2024 and sell it today you would earn a total of 10,000 from holding AGMA LAHLOU TAZI or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.37% |
| Values | Daily Returns |
AGMA LAHLOU TAZI vs. HIGHTECH PAYMENT SYSTEMS
Performance |
| Timeline |
| AGMA LAHLOU TAZI |
| HIGHTECH PAYMENT SYSTEMS |
AGMA LAHLOU and HIGHTECH PAYMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGMA LAHLOU and HIGHTECH PAYMENT
The main advantage of trading using opposite AGMA LAHLOU and HIGHTECH PAYMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGMA LAHLOU position performs unexpectedly, HIGHTECH PAYMENT 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 HIGHTECH PAYMENT will offset losses from the drop in HIGHTECH PAYMENT's long position.| AGMA LAHLOU vs. BMCI | AGMA LAHLOU vs. CFG BANK | AGMA LAHLOU vs. CREDIT IMMOBILIER ET | AGMA LAHLOU vs. MAROC LEASING |
| HIGHTECH PAYMENT vs. BMCI | HIGHTECH PAYMENT vs. CFG BANK | HIGHTECH PAYMENT vs. AGMA LAHLOU TAZI | HIGHTECH PAYMENT vs. CREDIT IMMOBILIER ET |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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