Correlation Between MAGHREBAIL and BANK OF AFRICA
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By analyzing existing cross correlation between MAGHREBAIL and BANK OF AFRICA, you can compare the effects of market volatilities on MAGHREBAIL and BANK OF AFRICA 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 MAGHREBAIL with a short position of BANK OF AFRICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGHREBAIL and BANK OF AFRICA.
Diversification Opportunities for MAGHREBAIL and BANK OF AFRICA
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MAGHREBAIL and BANK is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MAGHREBAIL and BANK OF AFRICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF AFRICA and MAGHREBAIL 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 MAGHREBAIL are associated (or correlated) with BANK OF AFRICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF AFRICA has no effect on the direction of MAGHREBAIL i.e., MAGHREBAIL and BANK OF AFRICA go up and down completely randomly.
Pair Corralation between MAGHREBAIL and BANK OF AFRICA
Assuming the 90 days trading horizon MAGHREBAIL is expected to generate 94.46 times more return on investment than BANK OF AFRICA. However, MAGHREBAIL is 94.46 times more volatile than BANK OF AFRICA. It trades about 0.1 of its potential returns per unit of risk. BANK OF AFRICA is currently generating about 0.03 per unit of risk. If you would invest 2,844 in MAGHREBAIL on September 12, 2024 and sell it today you would earn a total of 90,056 from holding MAGHREBAIL or generate 3166.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.7% |
| Values | Daily Returns |
MAGHREBAIL vs. BANK OF AFRICA
Performance |
| Timeline |
| MAGHREBAIL |
| BANK OF AFRICA |
MAGHREBAIL and BANK OF AFRICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGHREBAIL and BANK OF AFRICA
The main advantage of trading using opposite MAGHREBAIL and BANK OF AFRICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGHREBAIL position performs unexpectedly, BANK OF AFRICA 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 BANK OF AFRICA will offset losses from the drop in BANK OF AFRICA's long position.The idea behind MAGHREBAIL and BANK OF AFRICA 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.| BANK OF AFRICA vs. MICRODATA | BANK OF AFRICA vs. TGCC SA | BANK OF AFRICA vs. CFG BANK | BANK OF AFRICA vs. AGMA LAHLOU TAZI |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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