Correlation Between HIGHTECH PAYMENT and AGMA LAHLOU
Can any of the company-specific risk be diversified away by investing in both HIGHTECH PAYMENT and AGMA LAHLOU 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 HIGHTECH PAYMENT and AGMA LAHLOU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIGHTECH PAYMENT SYSTEMS and AGMA LAHLOU TAZI, you can compare the effects of market volatilities on HIGHTECH PAYMENT and AGMA LAHLOU 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 HIGHTECH PAYMENT with a short position of AGMA LAHLOU. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIGHTECH PAYMENT and AGMA LAHLOU.
Diversification Opportunities for HIGHTECH PAYMENT and AGMA LAHLOU
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HIGHTECH and AGMA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding HIGHTECH PAYMENT SYSTEMS and AGMA LAHLOU TAZI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGMA LAHLOU TAZI and HIGHTECH PAYMENT 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 HIGHTECH PAYMENT SYSTEMS are associated (or correlated) with AGMA LAHLOU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGMA LAHLOU TAZI has no effect on the direction of HIGHTECH PAYMENT i.e., HIGHTECH PAYMENT and AGMA LAHLOU go up and down completely randomly.
Pair Corralation between HIGHTECH PAYMENT and AGMA LAHLOU
Assuming the 90 days trading horizon HIGHTECH PAYMENT SYSTEMS is expected to generate 0.85 times more return on investment than AGMA LAHLOU. However, HIGHTECH PAYMENT SYSTEMS is 1.17 times less risky than AGMA LAHLOU. It trades about -0.15 of its potential returns per unit of risk. AGMA LAHLOU TAZI is currently generating about -0.22 per unit of risk. If you would invest 57,000 in HIGHTECH PAYMENT SYSTEMS on September 2, 2024 and sell it today you would lose (2,000) from holding HIGHTECH PAYMENT SYSTEMS or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HIGHTECH PAYMENT SYSTEMS vs. AGMA LAHLOU TAZI
Performance |
| Timeline |
| HIGHTECH PAYMENT SYSTEMS |
| AGMA LAHLOU TAZI |
HIGHTECH PAYMENT and AGMA LAHLOU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIGHTECH PAYMENT and AGMA LAHLOU
The main advantage of trading using opposite HIGHTECH PAYMENT and AGMA LAHLOU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIGHTECH PAYMENT position performs unexpectedly, AGMA LAHLOU 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 AGMA LAHLOU will offset losses from the drop in AGMA LAHLOU's long position.| HIGHTECH PAYMENT vs. MAGHREBAIL | HIGHTECH PAYMENT vs. MINIERE TOUISSIT | HIGHTECH PAYMENT vs. AFRIQUIA GAZ | HIGHTECH PAYMENT vs. AGMA LAHLOU TAZI |
| AGMA LAHLOU vs. MAGHREB OXYGENE | AGMA LAHLOU vs. MED PAPER | AGMA LAHLOU vs. CFG BANK | AGMA LAHLOU vs. SAMIR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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