Correlation Between BEKA LUX and CM AM
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By analyzing existing cross correlation between BEKA LUX SICAV and CM AM Monplus NE, you can compare the effects of market volatilities on BEKA LUX and CM AM 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 BEKA LUX with a short position of CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEKA LUX and CM AM.
Diversification Opportunities for BEKA LUX and CM AM
Poor diversification
The 3 months correlation between BEKA and 0P0001F96C is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BEKA LUX SICAV and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus and BEKA LUX 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 BEKA LUX SICAV are associated (or correlated) with CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of BEKA LUX i.e., BEKA LUX and CM AM go up and down completely randomly.
Pair Corralation between BEKA LUX and CM AM
Assuming the 90 days trading horizon BEKA LUX is expected to generate 4.63 times less return on investment than CM AM. In addition to that, BEKA LUX is 31.22 times more volatile than CM AM Monplus NE. It trades about 0.01 of its total potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.4 per unit of volatility. If you would invest 9,887 in CM AM Monplus NE on August 29, 2024 and sell it today you would earn a total of 718.00 from holding CM AM Monplus NE or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEKA LUX SICAV vs. CM AM Monplus NE
Performance |
| Timeline |
| BEKA LUX SICAV |
| CM AM Monplus |
BEKA LUX and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEKA LUX and CM AM
The main advantage of trading using opposite BEKA LUX and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEKA LUX position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
| CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. Echiquier Entrepreneurs G |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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