Correlation Between Avantium Holding and CM NV
Can any of the company-specific risk be diversified away by investing in both Avantium Holding and CM NV 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 Avantium Holding and CM NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avantium Holding BV and CM NV, you can compare the effects of market volatilities on Avantium Holding and CM NV 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 Avantium Holding with a short position of CM NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avantium Holding and CM NV.
Diversification Opportunities for Avantium Holding and CM NV
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Avantium and CMCOM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Avantium Holding BV and CM NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM NV and Avantium Holding 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 Avantium Holding BV are associated (or correlated) with CM NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM NV has no effect on the direction of Avantium Holding i.e., Avantium Holding and CM NV go up and down completely randomly.
Pair Corralation between Avantium Holding and CM NV
Assuming the 90 days trading horizon Avantium Holding BV is expected to under-perform the CM NV. In addition to that, Avantium Holding is 1.49 times more volatile than CM NV. It trades about -0.32 of its total potential returns per unit of risk. CM NV is currently generating about -0.41 per unit of volatility. If you would invest 662.00 in CM NV on August 30, 2024 and sell it today you would lose (72.00) from holding CM NV or give up 10.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avantium Holding BV vs. CM NV
Performance |
| Timeline |
| Avantium Holding |
| CM NV |
Avantium Holding and CM NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avantium Holding and CM NV
The main advantage of trading using opposite Avantium Holding and CM NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avantium Holding position performs unexpectedly, CM NV 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 NV will offset losses from the drop in CM NV's long position.| Avantium Holding vs. Akzo Nobel NV | Avantium Holding vs. Koninklijke KPN NV | Avantium Holding vs. Aegon NV | Avantium Holding vs. BlackRock ESG Multi Asset |
| CM NV vs. Just Eat Takeaway | CM NV vs. Alfen Beheer BV | CM NV vs. BE Semiconductor Industries | CM NV vs. Basic Fit NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |