Correlation Between ATTIJARIWAFA BANK and MAROC LEASING

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

By analyzing existing cross correlation between ATTIJARIWAFA BANK and MAROC LEASING, you can compare the effects of market volatilities on ATTIJARIWAFA BANK 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 ATTIJARIWAFA BANK with a short position of MAROC LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATTIJARIWAFA BANK and MAROC LEASING.

Diversification Opportunities for ATTIJARIWAFA BANK and MAROC LEASING

-0.07

Correlation Coefficient

ATTIJARIWAFA BANK  MAROC LEASING

Good diversification

The 3 months correlation between ATTIJARIWAFA and MAROC is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ATTIJARIWAFA BANK and MAROC LEASING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAROC LEASING and ATTIJARIWAFA BANK 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 ATTIJARIWAFA BANK 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 ATTIJARIWAFA BANK i.e., ATTIJARIWAFA BANK and MAROC LEASING go up and down completely randomly.

Pair Corralation between ATTIJARIWAFA BANK and MAROC LEASING

Assuming the 90 days trading horizon ATTIJARIWAFA BANK is expected to generate 0.89 times more return on investment than MAROC LEASING. However, ATTIJARIWAFA BANK is 1.12 times less risky than MAROC LEASING. It trades about 0.14 of its potential returns per unit of risk. MAROC LEASING is currently generating about -0.03 per unit of risk. If you would invest  57,000  in ATTIJARIWAFA BANK on December 2, 2024 and sell it today you would earn a total of  7,010  from holding ATTIJARIWAFA BANK or generate 12.3% return on investment over 90 days.

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

ATTIJARIWAFA BANK  vs.  MAROC LEASING

ATTIJARIWAFA BANK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATTIJARIWAFA BANK are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental drivers, ATTIJARIWAFA BANK may actually be approaching a critical reversion point that can send shares even higher in April 2025.

MAROC LEASING

Risk-Adjusted Performance

Very Weak

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.

Pair Trading with ATTIJARIWAFA BANK and MAROC LEASING

The main advantage of trading using opposite ATTIJARIWAFA BANK and MAROC LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATTIJARIWAFA BANK 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 ATTIJARIWAFA BANK 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.