Correlation Between ATTIJARIWAFA BANK and SONASID

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

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

Diversification Opportunities for ATTIJARIWAFA BANK and SONASID

0.0

Correlation Coefficient

ATTIJARIWAFA BANK  SONASID

Pay attention - limited upside

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

Pair Corralation between ATTIJARIWAFA BANK and SONASID

If you would invest  56,600  in ATTIJARIWAFA BANK on December 30, 2024 and sell it today you would earn a total of  13,380  from holding ATTIJARIWAFA BANK or generate 23.64% return on investment over 90 days.

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

ATTIJARIWAFA BANK  vs.  SONASID

ATTIJARIWAFA BANK

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ATTIJARIWAFA BANK are ranked lower than 22 (%) 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.

SONASID

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ATTIJARIWAFA BANK and SONASID

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

The idea behind ATTIJARIWAFA BANK and SONASID 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.