Correlation Between AGMA LAHLOU and CREDIT IMMOBILIER

Can any of the company-specific risk be diversified away by investing in both AGMA LAHLOU and CREDIT IMMOBILIER 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 AGMA LAHLOU and CREDIT IMMOBILIER into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGMA LAHLOU TAZI and CREDIT IMMOBILIER ET, you can compare the effects of market volatilities on AGMA LAHLOU and CREDIT IMMOBILIER 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 AGMA LAHLOU with a short position of CREDIT IMMOBILIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGMA LAHLOU and CREDIT IMMOBILIER.

Diversification Opportunities for AGMA LAHLOU and CREDIT IMMOBILIER

-0.15

Correlation Coefficient

AGMA LAHLOU  CREDIT IMMOBILIER

Good diversification

The 3 months correlation between AGMA and CREDIT is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding AGMA LAHLOU TAZI and CREDIT IMMOBILIER ET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT IMMOBILIER and AGMA LAHLOU 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 AGMA LAHLOU TAZI are associated (or correlated) with CREDIT IMMOBILIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT IMMOBILIER has no effect on the direction of AGMA LAHLOU i.e., AGMA LAHLOU and CREDIT IMMOBILIER go up and down completely randomly.

Pair Corralation between AGMA LAHLOU and CREDIT IMMOBILIER

Assuming the 90 days trading horizon AGMA LAHLOU TAZI is expected to under-perform the CREDIT IMMOBILIER. But the stock apears to be less risky and, when comparing its historical volatility, AGMA LAHLOU TAZI is 1.91 times less risky than CREDIT IMMOBILIER. The stock trades about -0.15 of its potential returns per unit of risk. The CREDIT IMMOBILIER ET is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  41,200  in CREDIT IMMOBILIER ET on September 12, 2024 and sell it today you would lose (200.00) from holding CREDIT IMMOBILIER ET or give up 0.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AGMA LAHLOU TAZI  vs.  CREDIT IMMOBILIER ET

AGMA LAHLOU TAZI

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AGMA LAHLOU TAZI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

CREDIT IMMOBILIER

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CREDIT IMMOBILIER ET has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, CREDIT IMMOBILIER is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AGMA LAHLOU and CREDIT IMMOBILIER

The main advantage of trading using opposite AGMA LAHLOU and CREDIT IMMOBILIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGMA LAHLOU position performs unexpectedly, CREDIT IMMOBILIER 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 CREDIT IMMOBILIER will offset losses from the drop in CREDIT IMMOBILIER's long position.

The idea behind AGMA LAHLOU TAZI and CREDIT IMMOBILIER ET 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.