Correlation Between CM AM and ALM ES
Specify exactly 2 symbols:
By analyzing existing cross correlation between CM AM Monplus NE and ALM ES Actions, you can compare the effects of market volatilities on CM AM and ALM ES 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 CM AM with a short position of ALM ES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and ALM ES.
Diversification Opportunities for CM AM and ALM ES
Poor diversification
The 3 months correlation between 0P0001F96C and ALM is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and ALM ES Actions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM ES Actions and CM AM 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 CM AM Monplus NE are associated (or correlated) with ALM ES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM ES Actions has no effect on the direction of CM AM i.e., CM AM and ALM ES go up and down completely randomly.
Pair Corralation between CM AM and ALM ES
Assuming the 90 days trading horizon CM AM Monplus NE is expected to generate 0.02 times more return on investment than ALM ES. However, CM AM Monplus NE is 44.06 times less risky than ALM ES. It trades about 1.1 of its potential returns per unit of risk. ALM ES Actions is currently generating about -0.3 per unit of risk. If you would invest 10,619 in CM AM Monplus NE on October 12, 2024 and sell it today you would earn a total of 25.00 from holding CM AM Monplus NE or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.35% |
| Values | Daily Returns |
CM AM Monplus NE vs. ALM ES Actions
Performance |
| Timeline |
| CM AM Monplus |
| ALM ES Actions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
CM AM and ALM ES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and ALM ES
The main advantage of trading using opposite CM AM and ALM ES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, ALM ES 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 ALM ES will offset losses from the drop in ALM ES's long position.| CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. DWS Aktien Strategie |
| ALM ES vs. Groupama Entreprises N | ALM ES vs. Renaissance Europe C | ALM ES vs. Superior Plus Corp | ALM ES vs. Origin Agritech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |