Correlation Between CMG Holdings and Mirriad Advertising
Can any of the company-specific risk be diversified away by investing in both CMG Holdings and Mirriad Advertising 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 CMG Holdings and Mirriad Advertising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMG Holdings Group and Mirriad Advertising plc, you can compare the effects of market volatilities on CMG Holdings and Mirriad Advertising 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 CMG Holdings with a short position of Mirriad Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and Mirriad Advertising.
Diversification Opportunities for CMG Holdings and Mirriad Advertising
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CMG and Mirriad is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and Mirriad Advertising plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirriad Advertising plc and CMG Holdings 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 CMG Holdings Group are associated (or correlated) with Mirriad Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirriad Advertising plc has no effect on the direction of CMG Holdings i.e., CMG Holdings and Mirriad Advertising go up and down completely randomly.
Pair Corralation between CMG Holdings and Mirriad Advertising
If you would invest 0.19 in CMG Holdings Group on November 27, 2024 and sell it today you would lose (0.03) from holding CMG Holdings Group or give up 15.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CMG Holdings Group vs. Mirriad Advertising plc
Performance |
| Timeline |
| CMG Holdings Group |
| Mirriad Advertising plc |
CMG Holdings and Mirriad Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Holdings and Mirriad Advertising
The main advantage of trading using opposite CMG Holdings and Mirriad Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Holdings position performs unexpectedly, Mirriad Advertising 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 Mirriad Advertising will offset losses from the drop in Mirriad Advertising's long position.| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay Resources |
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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 Managers module to screen money managers from public funds and ETFs managed around the world.
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