Correlation Between BMCI and MAROC LEASING
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By analyzing existing cross correlation between BMCI and MAROC LEASING, you can compare the effects of market volatilities on BMCI and MAROC LEASING 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 MAROC LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BMCI and MAROC LEASING.
Diversification Opportunities for BMCI and MAROC LEASING
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BMCI and MAROC is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BMCI and MAROC LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAROC LEASING 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 MAROC LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAROC LEASING has no effect on the direction of BMCI i.e., BMCI and MAROC LEASING go up and down completely randomly.
Pair Corralation between BMCI and MAROC LEASING
Assuming the 90 days trading horizon BMCI is expected to generate 75.36 times more return on investment than MAROC LEASING. However, BMCI is 75.36 times more volatile than MAROC LEASING. It trades about 0.1 of its potential returns per unit of risk. MAROC LEASING is currently generating about 0.03 per unit of risk. If you would invest 44,000 in BMCI on August 27, 2024 and sell it today you would earn a total of 12,600 from holding BMCI or generate 28.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 70.16% |
| Values | Daily Returns |
BMCI vs. MAROC LEASING
Performance |
| Timeline |
| BMCI |
| MAROC LEASING |
BMCI and MAROC LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BMCI and MAROC LEASING
The main advantage of trading using opposite BMCI and MAROC LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BMCI position performs unexpectedly, MAROC LEASING 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 MAROC LEASING will offset losses from the drop in MAROC LEASING's long position.The idea behind BMCI and MAROC LEASING 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.| MAROC LEASING vs. BMCI | MAROC LEASING vs. CFG BANK | MAROC LEASING vs. AGMA LAHLOU TAZI | MAROC LEASING vs. CREDIT IMMOBILIER ET |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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