Correlation Between CFG BANK and CTM
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By analyzing existing cross correlation between CFG BANK and CTM, you can compare the effects of market volatilities on CFG BANK and CTM 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 CFG BANK with a short position of CTM. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFG BANK and CTM.
Diversification Opportunities for CFG BANK and CTM
Very poor diversification
The 3 months correlation between CFG and CTM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CFG BANK and CTM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTM and CFG BANK 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 CFG BANK are associated (or correlated) with CTM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTM has no effect on the direction of CFG BANK i.e., CFG BANK and CTM go up and down completely randomly.
Pair Corralation between CFG BANK and CTM
Assuming the 90 days trading horizon CFG BANK is expected to generate 1.6 times less return on investment than CTM. But when comparing it to its historical volatility, CFG BANK is 1.99 times less risky than CTM. It trades about 0.14 of its potential returns per unit of risk. CTM is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 59,000 in CTM on December 2, 2024 and sell it today you would earn a total of 52,000 from holding CTM or generate 88.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
CFG BANK vs. CTM
Performance |
| Timeline |
| CFG BANK |
| CTM |
CFG BANK and CTM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFG BANK and CTM
The main advantage of trading using opposite CFG BANK and CTM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFG BANK position performs unexpectedly, CTM 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 CTM will offset losses from the drop in CTM's long position.| CFG BANK vs. CREDIT IMMOBILIER ET | ||
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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