Correlation Between Baikowski SASU and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Baikowski SASU and CMG Cleantech 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 Baikowski SASU and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baikowski SASU and CMG Cleantech SA, you can compare the effects of market volatilities on Baikowski SASU and CMG Cleantech 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 Baikowski SASU with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baikowski SASU and CMG Cleantech.
Diversification Opportunities for Baikowski SASU and CMG Cleantech
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baikowski and CMG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Baikowski SASU and CMG Cleantech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMG Cleantech SA and Baikowski SASU 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 Baikowski SASU are associated (or correlated) with CMG Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMG Cleantech SA has no effect on the direction of Baikowski SASU i.e., Baikowski SASU and CMG Cleantech go up and down completely randomly.
Pair Corralation between Baikowski SASU and CMG Cleantech
Assuming the 90 days trading horizon Baikowski SASU is expected to generate 0.37 times more return on investment than CMG Cleantech. However, Baikowski SASU is 2.71 times less risky than CMG Cleantech. It trades about 0.0 of its potential returns per unit of risk. CMG Cleantech SA is currently generating about -0.01 per unit of risk. If you would invest 1,906 in Baikowski SASU on August 27, 2024 and sell it today you would lose (266.00) from holding Baikowski SASU or give up 13.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.1% |
| Values | Daily Returns |
Baikowski SASU vs. CMG Cleantech SA
Performance |
| Timeline |
| Baikowski SASU |
| CMG Cleantech SA |
Baikowski SASU and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baikowski SASU and CMG Cleantech
The main advantage of trading using opposite Baikowski SASU and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baikowski SASU position performs unexpectedly, CMG Cleantech 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 CMG Cleantech will offset losses from the drop in CMG Cleantech's long position.| Baikowski SASU vs. Grard Perrier Industrie | Baikowski SASU vs. Samse SA | Baikowski SASU vs. Manitou BF SA | Baikowski SASU vs. Ossiam Minimum Variance |
| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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