Correlation Between CREDIT IMMOBILIER and BMCI
Can any of the company-specific risk be diversified away by investing in both CREDIT IMMOBILIER and BMCI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CREDIT IMMOBILIER and BMCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREDIT IMMOBILIER ET and BMCI, you can compare the effects of market volatilities on CREDIT IMMOBILIER and BMCI 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 CREDIT IMMOBILIER with a short position of BMCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREDIT IMMOBILIER and BMCI.
Diversification Opportunities for CREDIT IMMOBILIER and BMCI
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CREDIT and BMCI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding CREDIT IMMOBILIER ET and BMCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMCI and CREDIT IMMOBILIER 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 CREDIT IMMOBILIER ET are associated (or correlated) with BMCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMCI has no effect on the direction of CREDIT IMMOBILIER i.e., CREDIT IMMOBILIER and BMCI go up and down completely randomly.
Pair Corralation between CREDIT IMMOBILIER and BMCI
Assuming the 90 days trading horizon CREDIT IMMOBILIER is expected to generate 139.53 times less return on investment than BMCI. But when comparing it to its historical volatility, CREDIT IMMOBILIER ET is 65.68 times less risky than BMCI. It trades about 0.05 of its potential returns per unit of risk. BMCI is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
CREDIT IMMOBILIER ET vs. BMCI
Performance |
| Timeline |
| CREDIT IMMOBILIER |
| BMCI |
CREDIT IMMOBILIER and BMCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREDIT IMMOBILIER and BMCI
The main advantage of trading using opposite CREDIT IMMOBILIER and BMCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREDIT IMMOBILIER position performs unexpectedly, BMCI 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 BMCI will offset losses from the drop in BMCI's long position.| CREDIT IMMOBILIER vs. BMCI | CREDIT IMMOBILIER vs. CFG BANK | CREDIT IMMOBILIER vs. AGMA LAHLOU TAZI | CREDIT IMMOBILIER vs. MAROC LEASING |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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