Correlation Between BANK OF AFRICA and MED PAPER
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By analyzing existing cross correlation between BANK OF AFRICA and MED PAPER, you can compare the effects of market volatilities on BANK OF AFRICA and MED PAPER 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 MED PAPER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF AFRICA and MED PAPER.
Diversification Opportunities for BANK OF AFRICA and MED PAPER
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between BANK and MED is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AFRICA and MED PAPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MED PAPER 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 MED PAPER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MED PAPER has no effect on the direction of BANK OF AFRICA i.e., BANK OF AFRICA and MED PAPER go up and down completely randomly.
Pair Corralation between BANK OF AFRICA and MED PAPER
Assuming the 90 days trading horizon BANK OF AFRICA is expected to under-perform the MED PAPER. But the stock apears to be less risky and, when comparing its historical volatility, BANK OF AFRICA is 1.32 times less risky than MED PAPER. The stock trades about -0.04 of its potential returns per unit of risk. The MED PAPER is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,010 in MED PAPER on September 12, 2024 and sell it today you would lose (10.00) from holding MED PAPER or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK OF AFRICA vs. MED PAPER
Performance |
| Timeline |
| BANK OF AFRICA |
| MED PAPER |
BANK OF AFRICA and MED PAPER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF AFRICA and MED PAPER
The main advantage of trading using opposite BANK OF AFRICA and MED PAPER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF AFRICA position performs unexpectedly, MED PAPER 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 MED PAPER will offset losses from the drop in MED PAPER'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 |
| MED PAPER vs. ATTIJARIWAFA BANK | MED PAPER vs. MAROC LEASING | MED PAPER vs. CFG BANK | MED PAPER vs. MICRODATA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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