Correlation Between CMG Holdings and Tremor International
Can any of the company-specific risk be diversified away by investing in both CMG Holdings and Tremor International 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 Tremor International 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 Tremor International, you can compare the effects of market volatilities on CMG Holdings and Tremor International 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 Tremor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and Tremor International.
Diversification Opportunities for CMG Holdings and Tremor International
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CMG and Tremor is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and Tremor International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremor International 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 Tremor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremor International has no effect on the direction of CMG Holdings i.e., CMG Holdings and Tremor International go up and down completely randomly.
Pair Corralation between CMG Holdings and Tremor International
Given the investment horizon of 90 days CMG Holdings Group is expected to generate 2.46 times more return on investment than Tremor International. However, CMG Holdings is 2.46 times more volatile than Tremor International. It trades about 0.04 of its potential returns per unit of risk. Tremor International is currently generating about 0.04 per unit of risk. If you would invest 0.42 in CMG Holdings Group on September 3, 2024 and sell it today you would lose (0.24) from holding CMG Holdings Group or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Holdings Group vs. Tremor International
Performance |
| Timeline |
| CMG Holdings Group |
| Tremor International |
CMG Holdings and Tremor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Holdings and Tremor International
The main advantage of trading using opposite CMG Holdings and Tremor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Holdings position performs unexpectedly, Tremor International 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 Tremor International will offset losses from the drop in Tremor International's long position.| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay Resources |
| Tremor International vs. Innovid Corp | Tremor International vs. Magnite | Tremor International vs. Criteo Sa | Tremor International vs. Ziff Davis |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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