Correlation Between BANK OF AFRICA and M2M GROUP
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By analyzing existing cross correlation between BANK OF AFRICA and M2M GROUP, you can compare the effects of market volatilities on BANK OF AFRICA and M2M GROUP 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 M2M GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF AFRICA and M2M GROUP.
Diversification Opportunities for BANK OF AFRICA and M2M GROUP
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANK and M2M is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AFRICA and M2M GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M2M GROUP 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 M2M GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M2M GROUP has no effect on the direction of BANK OF AFRICA i.e., BANK OF AFRICA and M2M GROUP go up and down completely randomly.
Pair Corralation between BANK OF AFRICA and M2M GROUP
Assuming the 90 days trading horizon BANK OF AFRICA is expected to under-perform the M2M GROUP. But the stock apears to be less risky and, when comparing its historical volatility, BANK OF AFRICA is 2.37 times less risky than M2M GROUP. The stock trades about -0.04 of its potential returns per unit of risk. The M2M GROUP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 55,000 in M2M GROUP on September 12, 2024 and sell it today you would earn a total of 3,000 from holding M2M GROUP or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK OF AFRICA vs. M2M GROUP
Performance |
| Timeline |
| BANK OF AFRICA |
| M2M GROUP |
BANK OF AFRICA and M2M GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF AFRICA and M2M GROUP
The main advantage of trading using opposite BANK OF AFRICA and M2M GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF AFRICA position performs unexpectedly, M2M GROUP 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 M2M GROUP will offset losses from the drop in M2M GROUP's long position.| BANK OF AFRICA vs. MICRODATA | BANK OF AFRICA vs. TGCC SA | BANK OF AFRICA vs. CFG BANK | BANK OF AFRICA vs. AGMA LAHLOU TAZI |
| M2M GROUP vs. CREDIT IMMOBILIER ET | M2M GROUP vs. ATTIJARIWAFA BANK | M2M GROUP vs. BANK OF AFRICA | M2M GROUP vs. CFG BANK |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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