Correlation Between MAROC LEASING and CFG BANK

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MAROC LEASING and CFG BANK 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 MAROC LEASING and CFG BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
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

MAROCCFGDiversified AwayMAROCCFGDiversified Away100%
-0.17
  Correlation Coefficient

Good diversification

The 3 months correlation between MAROC and CFG is -0.17. 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 1.46 times more return on investment than CFG BANK. However, MAROC LEASING is 1.46 times more volatile than CFG BANK. It trades about 0.12 of its potential returns per unit of risk. CFG BANK is currently generating about -0.08 per unit of risk. If you would invest  37,000  in MAROC LEASING on December 3, 2024 and sell it today you would earn a total of  1,600  from holding MAROC LEASING or generate 4.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MAROC LEASING  vs.  CFG BANK

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505101520
JavaScript chart by amCharts 3.21.15MAROC-LEASING CFG-BANK
       Timeline  
MAROC LEASING 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days MAROC LEASING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, MAROC LEASING is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar370375380385390395
CFG BANK 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CFG BANK are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental drivers, CFG BANK displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFebMar210220230240250

MAROC LEASING and CFG BANK Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.51-1.88-1.25-0.620.00.611.231.842.46 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15MAROC-LEASING CFG-BANK
       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.
The idea behind MAROC LEASING and CFG BANK 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.
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account