Correlation Between CMG Holdings and No Borders
Can any of the company-specific risk be diversified away by investing in both CMG Holdings and No Borders 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 No Borders 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 No Borders, you can compare the effects of market volatilities on CMG Holdings and No Borders 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 No Borders. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and No Borders.
Diversification Opportunities for CMG Holdings and No Borders
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CMG and NBDR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and No Borders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on No Borders 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 No Borders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of No Borders has no effect on the direction of CMG Holdings i.e., CMG Holdings and No Borders go up and down completely randomly.
Pair Corralation between CMG Holdings and No Borders
If you would invest 0.18 in CMG Holdings Group on November 9, 2024 and sell it today you would earn a total of 0.02 from holding CMG Holdings Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Holdings Group vs. No Borders
Performance |
| Timeline |
| CMG Holdings Group |
| No Borders |
CMG Holdings and No Borders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Holdings and No Borders
The main advantage of trading using opposite CMG Holdings and No Borders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Holdings position performs unexpectedly, No Borders 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 No Borders will offset losses from the drop in No Borders' long position.| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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