Correlation Between MAROC LEASING and CFG BANK
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By analyzing existing cross correlation between MAROC LEASING and CFG BANK, you can compare the effects of market volatilities on MAROC LEASING and CFG BANK 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 MAROC LEASING with a short position of CFG BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAROC LEASING and CFG BANK.
Diversification Opportunities for MAROC LEASING and CFG BANK
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAROC and CFG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MAROC LEASING and CFG BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFG BANK and MAROC LEASING 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 MAROC LEASING are associated (or correlated) with CFG BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFG BANK has no effect on the direction of MAROC LEASING i.e., MAROC LEASING and CFG BANK go up and down completely randomly.
Pair Corralation between MAROC LEASING and CFG BANK
Assuming the 90 days trading horizon MAROC LEASING is expected to generate 1.41 times less return on investment than CFG BANK. But when comparing it to its historical volatility, MAROC LEASING is 1.7 times less risky than CFG BANK. It trades about 0.19 of its potential returns per unit of risk. CFG BANK is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 18,800 in CFG BANK on August 30, 2024 and sell it today you would earn a total of 2,100 from holding CFG BANK or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
MAROC LEASING vs. CFG BANK
Performance |
| Timeline |
| MAROC LEASING |
| CFG BANK |
MAROC LEASING and CFG BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAROC LEASING and CFG BANK
The main advantage of trading using opposite MAROC LEASING and CFG BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAROC LEASING position performs unexpectedly, CFG BANK 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 CFG BANK will offset losses from the drop in CFG BANK's long position.| MAROC LEASING vs. MICRODATA | MAROC LEASING vs. CFG BANK | MAROC LEASING vs. AGMA LAHLOU TAZI | MAROC LEASING 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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