Correlation Between ATTIJARIWAFA BANK and MED PAPER

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

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

Diversification Opportunities for ATTIJARIWAFA BANK and MED PAPER

0.0

Correlation Coefficient

ATTIJARIWAFA BANK  MED PAPER

Pay attention - limited upside

The 3 months correlation between ATTIJARIWAFA and MED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATTIJARIWAFA BANK and MED PAPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MED PAPER 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 MED PAPER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MED PAPER has no effect on the direction of ATTIJARIWAFA BANK i.e., ATTIJARIWAFA BANK and MED PAPER go up and down completely randomly.

Pair Corralation between ATTIJARIWAFA BANK and MED PAPER

If you would invest  53,890  in ATTIJARIWAFA BANK on October 22, 2024 and sell it today you would earn a total of  8,210  from holding ATTIJARIWAFA BANK or generate 15.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ATTIJARIWAFA BANK  vs.  MED PAPER

ATTIJARIWAFA BANK

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATTIJARIWAFA BANK are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, ATTIJARIWAFA BANK reported solid returns over the last few months and may actually be approaching a breakup point.

MED PAPER

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MED PAPER has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, MED PAPER is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ATTIJARIWAFA BANK and MED PAPER

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

The idea behind ATTIJARIWAFA BANK and MED PAPER 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.