Correlation Between BANK OF AFRICA and CREDIT IMMOBILIER
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By analyzing existing cross correlation between BANK OF AFRICA and CREDIT IMMOBILIER ET, you can compare the effects of market volatilities on BANK OF AFRICA and CREDIT IMMOBILIER 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 CREDIT IMMOBILIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF AFRICA and CREDIT IMMOBILIER.
Diversification Opportunities for BANK OF AFRICA and CREDIT IMMOBILIER
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BANK and CREDIT is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AFRICA and CREDIT IMMOBILIER ET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT IMMOBILIER 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 CREDIT IMMOBILIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT IMMOBILIER has no effect on the direction of BANK OF AFRICA i.e., BANK OF AFRICA and CREDIT IMMOBILIER go up and down completely randomly.
Pair Corralation between BANK OF AFRICA and CREDIT IMMOBILIER
Assuming the 90 days trading horizon BANK OF AFRICA is expected to generate 0.8 times more return on investment than CREDIT IMMOBILIER. However, BANK OF AFRICA is 1.26 times less risky than CREDIT IMMOBILIER. It trades about 0.26 of its potential returns per unit of risk. CREDIT IMMOBILIER ET is currently generating about 0.2 per unit of risk. If you would invest 18,750 in BANK OF AFRICA on August 30, 2024 and sell it today you would earn a total of 950.00 from holding BANK OF AFRICA or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BANK OF AFRICA vs. CREDIT IMMOBILIER ET
Performance |
| Timeline |
| BANK OF AFRICA |
| CREDIT IMMOBILIER |
BANK OF AFRICA and CREDIT IMMOBILIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF AFRICA and CREDIT IMMOBILIER
The main advantage of trading using opposite BANK OF AFRICA and CREDIT IMMOBILIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF AFRICA position performs unexpectedly, CREDIT IMMOBILIER 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 CREDIT IMMOBILIER will offset losses from the drop in CREDIT IMMOBILIER's long position.| BANK OF AFRICA vs. MICRODATA | BANK OF AFRICA vs. MAROC LEASING | BANK OF AFRICA vs. HIGHTECH PAYMENT SYSTEMS | BANK OF AFRICA vs. CREDIT IMMOBILIER ET |
| CREDIT IMMOBILIER vs. MICRODATA | CREDIT IMMOBILIER vs. CFG BANK | CREDIT IMMOBILIER vs. AGMA LAHLOU TAZI | CREDIT IMMOBILIER vs. SAMIR |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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