Correlation Between MAGHREB OXYGENE and AUTO HALL

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Can any of the company-specific risk be diversified away by investing in both MAGHREB OXYGENE and AUTO HALL 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 MAGHREB OXYGENE and AUTO HALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGHREB OXYGENE and AUTO HALL, you can compare the effects of market volatilities on MAGHREB OXYGENE and AUTO HALL 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 MAGHREB OXYGENE with a short position of AUTO HALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGHREB OXYGENE and AUTO HALL.

Diversification Opportunities for MAGHREB OXYGENE and AUTO HALL

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between MAGHREB and AUTO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MAGHREB OXYGENE and AUTO HALL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTO HALL and MAGHREB OXYGENE 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 MAGHREB OXYGENE are associated (or correlated) with AUTO HALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTO HALL has no effect on the direction of MAGHREB OXYGENE i.e., MAGHREB OXYGENE and AUTO HALL go up and down completely randomly.

Pair Corralation between MAGHREB OXYGENE and AUTO HALL

Assuming the 90 days trading horizon MAGHREB OXYGENE is expected to generate 2.74 times more return on investment than AUTO HALL. However, MAGHREB OXYGENE is 2.74 times more volatile than AUTO HALL. It trades about 0.09 of its potential returns per unit of risk. AUTO HALL is currently generating about -0.12 per unit of risk. If you would invest  23,400  in MAGHREB OXYGENE on September 2, 2024 and sell it today you would earn a total of  1,455  from holding MAGHREB OXYGENE or generate 6.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MAGHREB OXYGENE  vs.  AUTO HALL

 Performance 
       Timeline  
MAGHREB OXYGENE 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in MAGHREB OXYGENE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, MAGHREB OXYGENE sustained solid returns over the last few months and may actually be approaching a breakup point.
AUTO HALL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AUTO HALL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, AUTO HALL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MAGHREB OXYGENE and AUTO HALL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MAGHREB OXYGENE and AUTO HALL

The main advantage of trading using opposite MAGHREB OXYGENE and AUTO HALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGHREB OXYGENE position performs unexpectedly, AUTO HALL 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 AUTO HALL will offset losses from the drop in AUTO HALL's long position.
MAGHREB OXYGENE vs. MED PAPER
MAGHREB OXYGENE vs. CFG BANK
MAGHREB OXYGENE vs. CREDIT IMMOBILIER ET
MAGHREB OXYGENE vs. INVOLYS
The idea behind MAGHREB OXYGENE and AUTO HALL 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.
AUTO HALL vs. MAGHREB OXYGENE
AUTO HALL vs. MED PAPER
AUTO HALL vs. CFG BANK
AUTO HALL 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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