CME Correlations

MX4A Stock

EUR 224.65 3.40 1.49%

The current 90-days correlation between CME Group and Molson Coors Beverage is 0.03 (i.e., Significant diversification). The correlation of CME is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

CME Correlation With Market

Weak diversification

The correlation between CME Group and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CME Group and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to CME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CME when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CME - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CME Group to buy it.

Moving together with CME Stock

0.86	LS4C	London Stock Exchange	Pair Corr
0.79	DB1	Deutsche Brse AG	Pair Corr
0.72	63DA	DEUTSCHE BOERSE ADR	Pair Corr
0.75	AUX	ASX Limited	Pair Corr
0.82	ENXB	Euronext NV	Pair Corr
0.74	9TX	TMX GROUP LTD	Pair Corr
0.72	E908	Lyxor 1	Pair Corr

Moving against CME Stock

0.87	BYRA	BANK RAKYAT IND	Pair Corr
0.82	BYRA	PT Bank Rakyat	Pair Corr
0.79	PQ9	BANK MANDIRI	Pair Corr
0.77	PQ9	BANK MANDIRI	Pair Corr
0.77	BYRA	BANK RAKYAT IND	Pair Corr
0.73	PQ9	PT Bank Mandiri	Pair Corr
0.7	BYRA	PT Bank Rakyat	Pair Corr
0.64	DBPD	Xtrackers ShortDAX	Pair Corr
0.63	PQ9	BANK MANDIRI	Pair Corr
0.44	BZG2	BANK CENTRAL ASIA	Pair Corr
0.32	BZG2	BANK CENTRAL ASIA	Pair Corr

Related Correlations Analysis

	NY7	SC3	JJ1	CVU	NY70	6CF	FV8
NY7		0.83	0.87	0.65	0.89	0.32	-0.76	NY7
SC3	0.83		0.87	0.54	0.81	0.39	-0.67	SC3
JJ1	0.87	0.87		0.73	0.79	0.48	-0.69	JJ1
CVU	0.65	0.54	0.73		0.59	0.54	-0.5	CVU
NY70	0.89	0.81	0.79	0.59		0.19	-0.67	NY70
6CF	0.32	0.39	0.48	0.54	0.19		-0.25	6CF
FV8	-0.76	-0.67	-0.69	-0.5	-0.67	-0.25		FV8
	NY7	SC3	JJ1	CVU	NY70	6CF	FV8

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

NY70	+ 0.89	NY7
JJ1	+ 0.87	NY7
JJ1	+ 0.87	SC3
SC3	+ 0.83	NY7
NY70	+ 0.81	SC3
NY70	+ 0.79	JJ1

High negative correlations

FV8	- 0.76	NY7
FV8	- 0.69	JJ1
FV8	- 0.67	NY70
FV8	- 0.67	SC3
FV8	- 0.5	CVU
FV8	- 0.25	6CF

Risk-Adjusted Indicators

There is a big difference between CME Stock performing well and CME Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze CME's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NY7	1.16	0.25	0.11	1.98	1.11	(1.32)	2.85	(2.02)	12.16
SC3	1.65	0.19	0.11	0.29	1.61	(2.14)	3.88	(2.76)	13.17
JJ1	0.56	0.03	0.00	0.16	0.40	(1.29)	1.88	(1.29)	5.69
CVU	1.35	0.20	0.07	0.64	1.23	(1.90)	3.81	(2.86)	9.35
NY70	1.22	0.18	0.01	(0.38)	1.60	(2.16)	3.97	(3.31)	13.15
6CF	1.36	0.11	0.00	0.91	1.93	(1.58)	2.83	(3.70)	10.37
FV8	1.58	(0.26)	0.00	(0.27)	0.00	0.00	3.81	(2.87)	9.05

Be your own money manager

Our tools can tell you how much better you can do entering a position in CME without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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CME Corporate Management

Elected by the shareholders, the CME's board of directors comprises two types of representatives: CME inside directors who are chosen from within the company, and outside directors, selected externally and held independent of CME. The board's role is to monitor CME's management team and ensure that shareholders' interests are well served. CME's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, CME's outside directors are responsible for providing unbiased perspectives on the board's policies.

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