Correlation Between CTM and CFG BANK
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By analyzing existing cross correlation between CTM and CFG BANK, you can compare the effects of market volatilities on CTM and CFG BANK 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 CTM with a short position of CFG BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTM and CFG BANK.
Diversification Opportunities for CTM and CFG BANK
Very poor diversification
The 3 months correlation between CTM and CFG is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CTM and CFG BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFG BANK and CTM 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 CTM are associated (or correlated) with CFG BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFG BANK has no effect on the direction of CTM i.e., CTM and CFG BANK go up and down completely randomly.
Pair Corralation between CTM and CFG BANK
Assuming the 90 days trading horizon CTM is expected to generate 1.62 times more return on investment than CFG BANK. However, CTM is 1.62 times more volatile than CFG BANK. It trades about 0.05 of its potential returns per unit of risk. CFG BANK is currently generating about -0.09 per unit of risk. If you would invest 109,000 in CTM on December 2, 2024 and sell it today you would earn a total of 2,000 from holding CTM or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTM vs. CFG BANK
Performance |
| Timeline |
| CTM |
| CFG BANK |
CTM and CFG BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTM and CFG BANK
The main advantage of trading using opposite CTM and CFG BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTM position performs unexpectedly, CFG BANK 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 CFG BANK will offset losses from the drop in CFG BANK's long position.The idea behind CTM and CFG BANK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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