Correlation Between BANK CENTRAL and CME
Can any of the company-specific risk be diversified away by investing in both BANK CENTRAL and CME 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 BANK CENTRAL and CME into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK CENTRAL ASIA and CME Group, you can compare the effects of market volatilities on BANK CENTRAL and CME 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 BANK CENTRAL with a short position of CME. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK CENTRAL and CME.
Diversification Opportunities for BANK CENTRAL and CME
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and CME is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding BANK CENTRAL ASIA and CME Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME Group and BANK CENTRAL 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 BANK CENTRAL ASIA are associated (or correlated) with CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME Group has no effect on the direction of BANK CENTRAL i.e., BANK CENTRAL and CME go up and down completely randomly.
Pair Corralation between BANK CENTRAL and CME
Assuming the 90 days trading horizon BANK CENTRAL ASIA is expected to under-perform the CME. In addition to that, BANK CENTRAL is 1.11 times more volatile than CME Group. It trades about -0.08 of its total potential returns per unit of risk. CME Group is currently generating about 0.17 per unit of volatility. If you would invest 20,397 in CME Group on September 13, 2024 and sell it today you would earn a total of 2,303 from holding CME Group or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK CENTRAL ASIA vs. CME Group
Performance |
| Timeline |
| BANK CENTRAL ASIA |
| CME Group |
BANK CENTRAL and CME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK CENTRAL and CME
The main advantage of trading using opposite BANK CENTRAL and CME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK CENTRAL position performs unexpectedly, CME 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 CME will offset losses from the drop in CME's long position.| BANK CENTRAL vs. Apple Inc | BANK CENTRAL vs. Apple Inc | BANK CENTRAL vs. Apple Inc | BANK CENTRAL vs. Apple Inc |
| CME vs. Playa Hotels Resorts | CME vs. JD SPORTS FASH | CME vs. PLAYSTUDIOS A DL 0001 | CME vs. ANTA SPORTS PRODUCT |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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