Correlation Between CM AM and Templeton Asian
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By analyzing existing cross correlation between CM AM Monplus NE and Templeton Asian Bond, you can compare the effects of market volatilities on CM AM and Templeton Asian 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 Templeton Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and Templeton Asian.
Diversification Opportunities for CM AM and Templeton Asian
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0P0001F96C and Templeton is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and Templeton Asian Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Asian Bond 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 Templeton Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Asian Bond has no effect on the direction of CM AM i.e., CM AM and Templeton Asian go up and down completely randomly.
Pair Corralation between CM AM and Templeton Asian
Assuming the 90 days trading horizon CM AM is expected to generate 3.25 times less return on investment than Templeton Asian. But when comparing it to its historical volatility, CM AM Monplus NE is 34.2 times less risky than Templeton Asian. It trades about 1.54 of its potential returns per unit of risk. Templeton Asian Bond is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Templeton Asian Bond on September 14, 2024 and sell it today you would earn a total of 98.00 from holding Templeton Asian Bond or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.69% |
| Values | Daily Returns |
CM AM Monplus NE vs. Templeton Asian Bond
Performance |
| Timeline |
| CM AM Monplus |
| Templeton Asian Bond |
CM AM and Templeton Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and Templeton Asian
The main advantage of trading using opposite CM AM and Templeton Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, Templeton Asian 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 Templeton Asian will offset losses from the drop in Templeton Asian's long position.| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM vs. Origin Agritech |
| Templeton Asian vs. Groupama Entreprises N | Templeton Asian vs. Renaissance Europe C | Templeton Asian vs. Superior Plus Corp | Templeton Asian 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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