Correlation Between BMCI and MAGHREB OXYGENE
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By analyzing existing cross correlation between BMCI and MAGHREB OXYGENE, you can compare the effects of market volatilities on BMCI and MAGHREB OXYGENE 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 BMCI with a short position of MAGHREB OXYGENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMCI and MAGHREB OXYGENE.
Diversification Opportunities for BMCI and MAGHREB OXYGENE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BMCI and MAGHREB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BMCI and MAGHREB OXYGENE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGHREB OXYGENE and BMCI 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 BMCI are associated (or correlated) with MAGHREB OXYGENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGHREB OXYGENE has no effect on the direction of BMCI i.e., BMCI and MAGHREB OXYGENE go up and down completely randomly.
Pair Corralation between BMCI and MAGHREB OXYGENE
Assuming the 90 days trading horizon BMCI is expected to under-perform the MAGHREB OXYGENE. But the stock apears to be less risky and, when comparing its historical volatility, BMCI is 1.44 times less risky than MAGHREB OXYGENE. The stock trades about -0.06 of its potential returns per unit of risk. The MAGHREB OXYGENE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 21,330 in MAGHREB OXYGENE on September 2, 2024 and sell it today you would earn a total of 3,525 from holding MAGHREB OXYGENE or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BMCI vs. MAGHREB OXYGENE
Performance |
| Timeline |
| BMCI |
| MAGHREB OXYGENE |
BMCI and MAGHREB OXYGENE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMCI and MAGHREB OXYGENE
The main advantage of trading using opposite BMCI and MAGHREB OXYGENE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMCI position performs unexpectedly, MAGHREB OXYGENE 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 MAGHREB OXYGENE will offset losses from the drop in MAGHREB OXYGENE's long position.The idea behind BMCI and MAGHREB OXYGENE 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.| MAGHREB OXYGENE vs. MED PAPER | MAGHREB OXYGENE vs. CFG BANK | MAGHREB OXYGENE vs. CREDIT IMMOBILIER ET | MAGHREB OXYGENE vs. INVOLYS |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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