Correlation Between MINIERE TOUISSIT and CFG BANK

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

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

Diversification Opportunities for MINIERE TOUISSIT and CFG BANK

0.84

Correlation Coefficient

MINIERE TOUISSIT  CFG BANK

Very poor diversification

The 3 months correlation between MINIERE and CFG is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding MINIERE TOUISSIT and CFG BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFG BANK and MINIERE TOUISSIT 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 MINIERE TOUISSIT are associated (or correlated) with CFG BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFG BANK has no effect on the direction of MINIERE TOUISSIT i.e., MINIERE TOUISSIT and CFG BANK go up and down completely randomly.

Pair Corralation between MINIERE TOUISSIT and CFG BANK

Assuming the 90 days trading horizon MINIERE TOUISSIT is expected to generate 1.16 times less return on investment than CFG BANK. In addition to that, MINIERE TOUISSIT is 1.68 times more volatile than CFG BANK. It trades about 0.09 of its total potential returns per unit of risk. CFG BANK is currently generating about 0.18 per unit of volatility. If you would invest  20,700  in CFG BANK on December 3, 2024 and sell it today you would earn a total of  3,000  from holding CFG BANK or generate 14.49% return on investment over 90 days.

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

MINIERE TOUISSIT  vs.  CFG BANK

MINIERE TOUISSIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MINIERE TOUISSIT are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, MINIERE TOUISSIT may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CFG BANK

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CFG BANK are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental drivers, CFG BANK displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MINIERE TOUISSIT and CFG BANK

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

The idea behind MINIERE TOUISSIT and CFG 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.