Correlation Between MAGHREBAIL and ATTIJARIWAFA BANK

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

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

Diversification Opportunities for MAGHREBAIL and ATTIJARIWAFA BANK

-0.13

Correlation Coefficient

MAGHREBAIL  ATTIJARIWAFA BANK

Good diversification

The 3 months correlation between MAGHREBAIL and ATTIJARIWAFA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MAGHREBAIL and ATTIJARIWAFA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATTIJARIWAFA BANK and MAGHREBAIL 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 MAGHREBAIL are associated (or correlated) with ATTIJARIWAFA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATTIJARIWAFA BANK has no effect on the direction of MAGHREBAIL i.e., MAGHREBAIL and ATTIJARIWAFA BANK go up and down completely randomly.

Pair Corralation between MAGHREBAIL and ATTIJARIWAFA BANK

Assuming the 90 days trading horizon MAGHREBAIL is expected to generate 107.95 times less return on investment than ATTIJARIWAFA BANK. But when comparing it to its historical volatility, MAGHREBAIL is 2.34 times less risky than ATTIJARIWAFA BANK. It trades about 0.0 of its potential returns per unit of risk. ATTIJARIWAFA BANK is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  54,500  in ATTIJARIWAFA BANK on October 26, 2024 and sell it today you would earn a total of  6,760  from holding ATTIJARIWAFA BANK or generate 12.4% return on investment over 90 days.

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

MAGHREBAIL  vs.  ATTIJARIWAFA BANK

MAGHREBAIL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAGHREBAIL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, MAGHREBAIL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ATTIJARIWAFA BANK

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATTIJARIWAFA BANK are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental drivers, ATTIJARIWAFA BANK reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MAGHREBAIL and ATTIJARIWAFA BANK

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

The idea behind MAGHREBAIL and ATTIJARIWAFA BANK 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.