Correlation Between Cm Commodity and International Investors
Can any of the company-specific risk be diversified away by investing in both Cm Commodity and International Investors 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 Cm Commodity and International Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cm Modity Index and International Investors Gold, you can compare the effects of market volatilities on Cm Commodity and International Investors 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 Cm Commodity with a short position of International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cm Commodity and International Investors.
Diversification Opportunities for Cm Commodity and International Investors
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CMCYX and International is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cm Modity Index and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors and Cm Commodity 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 Cm Modity Index are associated (or correlated) with International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Cm Commodity i.e., Cm Commodity and International Investors go up and down completely randomly.
Pair Corralation between Cm Commodity and International Investors
Assuming the 90 days horizon Cm Commodity is expected to generate 2.29 times less return on investment than International Investors. But when comparing it to its historical volatility, Cm Modity Index is 2.46 times less risky than International Investors. It trades about 0.4 of its potential returns per unit of risk. International Investors Gold is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,049 in International Investors Gold on October 28, 2024 and sell it today you would earn a total of 109.00 from holding International Investors Gold or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cm Modity Index vs. International Investors Gold
Performance |
| Timeline |
| Cm Modity Index |
| International Investors |
Cm Commodity and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cm Commodity and International Investors
The main advantage of trading using opposite Cm Commodity and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cm Commodity position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' long position.| Cm Commodity vs. Pgim Jennison Natural | Cm Commodity vs. Allianzgi Global Natural | Cm Commodity vs. Pimco Energy Tactical | Cm Commodity vs. Adams Natural Resources |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |