Correlation Between SMI and MAROC LEASING
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By analyzing existing cross correlation between SMI and MAROC LEASING, you can compare the effects of market volatilities on SMI and MAROC LEASING 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 SMI with a short position of MAROC LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMI and MAROC LEASING.
Diversification Opportunities for SMI and MAROC LEASING
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SMI and MAROC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SMI and MAROC LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAROC LEASING and SMI 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 SMI are associated (or correlated) with MAROC LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAROC LEASING has no effect on the direction of SMI i.e., SMI and MAROC LEASING go up and down completely randomly.
Pair Corralation between SMI and MAROC LEASING
Assuming the 90 days trading horizon SMI is expected to generate 1.57 times more return on investment than MAROC LEASING. However, SMI is 1.57 times more volatile than MAROC LEASING. It trades about 0.05 of its potential returns per unit of risk. MAROC LEASING is currently generating about 0.03 per unit of risk. If you would invest 140,600 in SMI on September 3, 2024 and sell it today you would earn a total of 64,400 from holding SMI or generate 45.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.75% |
| Values | Daily Returns |
SMI vs. MAROC LEASING
Performance |
| Timeline |
| SMI |
| MAROC LEASING |
SMI and MAROC LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMI and MAROC LEASING
The main advantage of trading using opposite SMI and MAROC LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMI position performs unexpectedly, MAROC LEASING 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 MAROC LEASING will offset losses from the drop in MAROC LEASING's long position.The idea behind SMI and MAROC LEASING 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.| MAROC LEASING vs. BANK OF AFRICA | MAROC LEASING vs. M2M GROUP | MAROC LEASING vs. MAGHREB OXYGENE | MAROC LEASING vs. MED PAPER |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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