Correlation Between MAROC TELECOM and ASTRA INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both MAROC TELECOM and ASTRA INTERNATIONAL 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 TELECOM and ASTRA INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAROC TELECOM and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on MAROC TELECOM and ASTRA INTERNATIONAL 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 TELECOM with a short position of ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAROC TELECOM and ASTRA INTERNATIONAL.
Diversification Opportunities for MAROC TELECOM and ASTRA INTERNATIONAL
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAROC and ASTRA is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MAROC TELECOM and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL and MAROC TELECOM 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 TELECOM are associated (or correlated) with ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of MAROC TELECOM i.e., MAROC TELECOM and ASTRA INTERNATIONAL go up and down completely randomly.
Pair Corralation between MAROC TELECOM and ASTRA INTERNATIONAL
Assuming the 90 days trading horizon MAROC TELECOM is expected to generate 2.18 times more return on investment than ASTRA INTERNATIONAL. However, MAROC TELECOM is 2.18 times more volatile than ASTRA INTERNATIONAL. It trades about 0.06 of its potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about -0.02 per unit of risk. If you would invest 377.00 in MAROC TELECOM on September 12, 2024 and sell it today you would earn a total of 393.00 from holding MAROC TELECOM or generate 104.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAROC TELECOM vs. ASTRA INTERNATIONAL
Performance |
| Timeline |
| MAROC TELECOM |
| ASTRA INTERNATIONAL |
MAROC TELECOM and ASTRA INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAROC TELECOM and ASTRA INTERNATIONAL
The main advantage of trading using opposite MAROC TELECOM and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAROC TELECOM position performs unexpectedly, ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.| MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc | MAROC TELECOM vs. Apple Inc |
| ASTRA INTERNATIONAL vs. MAROC TELECOM | ASTRA INTERNATIONAL vs. Iridium Communications | ASTRA INTERNATIONAL vs. Zoom Video Communications | ASTRA INTERNATIONAL vs. CANON MARKETING JP |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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