Correlation Between BANK OF AFRICA and ATTIJARIWAFA BANK
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By analyzing existing cross correlation between BANK OF AFRICA and ATTIJARIWAFA BANK, you can compare the effects of market volatilities on BANK OF AFRICA and ATTIJARIWAFA 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 BANK OF AFRICA with a short position of ATTIJARIWAFA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF AFRICA and ATTIJARIWAFA BANK.
Diversification Opportunities for BANK OF AFRICA and ATTIJARIWAFA BANK
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BANK and ATTIJARIWAFA is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AFRICA and ATTIJARIWAFA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATTIJARIWAFA BANK and BANK OF AFRICA 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 BANK OF AFRICA are associated (or correlated) with ATTIJARIWAFA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATTIJARIWAFA BANK has no effect on the direction of BANK OF AFRICA i.e., BANK OF AFRICA and ATTIJARIWAFA BANK go up and down completely randomly.
Pair Corralation between BANK OF AFRICA and ATTIJARIWAFA BANK
Assuming the 90 days trading horizon BANK OF AFRICA is expected to generate 2.17 times more return on investment than ATTIJARIWAFA BANK. However, BANK OF AFRICA is 2.17 times more volatile than ATTIJARIWAFA BANK. It trades about 0.62 of its potential returns per unit of risk. ATTIJARIWAFA BANK is currently generating about 0.28 per unit of risk. If you would invest 17,600 in BANK OF AFRICA on February 10, 2025 and sell it today you would earn a total of 5,300 from holding BANK OF AFRICA or generate 30.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK OF AFRICA vs. ATTIJARIWAFA BANK
Performance |
| Timeline |
| BANK OF AFRICA |
| ATTIJARIWAFA BANK |
BANK OF AFRICA and ATTIJARIWAFA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF AFRICA and ATTIJARIWAFA BANK
The main advantage of trading using opposite BANK OF AFRICA and ATTIJARIWAFA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF AFRICA position performs unexpectedly, ATTIJARIWAFA 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 ATTIJARIWAFA BANK will offset losses from the drop in ATTIJARIWAFA BANK's long position.The idea behind BANK OF AFRICA and ATTIJARIWAFA BANK 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.| ATTIJARIWAFA BANK vs. MAROC LEASING | ATTIJARIWAFA BANK vs. MICRODATA | ATTIJARIWAFA BANK vs. HIGHTECH PAYMENT SYSTEMS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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