Correlation Between Boiron SA and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Boiron SA 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 Boiron SA and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boiron SA and CMG Cleantech SA, you can compare the effects of market volatilities on Boiron SA 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 Boiron SA with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and CMG Cleantech.
Diversification Opportunities for Boiron SA and CMG Cleantech
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boiron and CMG is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA 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 Boiron SA 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 Boiron SA 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 Boiron SA i.e., Boiron SA and CMG Cleantech go up and down completely randomly.
Pair Corralation between Boiron SA and CMG Cleantech
Assuming the 90 days trading horizon Boiron SA is expected to under-perform the CMG Cleantech. In addition to that, Boiron SA is 2.41 times more volatile than CMG Cleantech SA. It trades about -0.43 of its total potential returns per unit of risk. CMG Cleantech SA is currently generating about 0.15 per unit of volatility. If you would invest 120.00 in CMG Cleantech SA on September 1, 2024 and sell it today you would earn a total of 3.00 from holding CMG Cleantech SA or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. CMG Cleantech SA
Performance |
| Timeline |
| Boiron SA |
| CMG Cleantech SA |
Boiron SA and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and CMG Cleantech
The main advantage of trading using opposite Boiron SA and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron SA 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.| Boiron SA vs. Virbac SA | Boiron SA vs. Bonduelle SCA | Boiron SA vs. Biomerieux SA | Boiron SA vs. Guerbet S A |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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