Correlation Between Foncire 7 and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Foncire 7 and CMG Cleantech 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 Foncire 7 and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foncire 7 investissement and CMG Cleantech SA, you can compare the effects of market volatilities on Foncire 7 and CMG Cleantech 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 Foncire 7 with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foncire 7 and CMG Cleantech.
Diversification Opportunities for Foncire 7 and CMG Cleantech
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foncire and CMG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Foncire 7 investissement and CMG Cleantech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMG Cleantech SA and Foncire 7 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 Foncire 7 investissement are associated (or correlated) with CMG Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMG Cleantech SA has no effect on the direction of Foncire 7 i.e., Foncire 7 and CMG Cleantech go up and down completely randomly.
Pair Corralation between Foncire 7 and CMG Cleantech
Assuming the 90 days trading horizon Foncire 7 investissement is expected to under-perform the CMG Cleantech. But the stock apears to be less risky and, when comparing its historical volatility, Foncire 7 investissement is 1.39 times less risky than CMG Cleantech. The stock trades about -0.05 of its potential returns per unit of risk. The CMG Cleantech SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 216.00 in CMG Cleantech SA on September 2, 2024 and sell it today you would lose (93.00) from holding CMG Cleantech SA or give up 43.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foncire 7 investissement vs. CMG Cleantech SA
Performance |
| Timeline |
| Foncire 7 investissement |
| CMG Cleantech SA |
Foncire 7 and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foncire 7 and CMG Cleantech
The main advantage of trading using opposite Foncire 7 and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foncire 7 position performs unexpectedly, CMG Cleantech 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 CMG Cleantech will offset losses from the drop in CMG Cleantech's long position.| Foncire 7 vs. Atos SE | Foncire 7 vs. Waga Energy SA | Foncire 7 vs. Adocia | Foncire 7 vs. Compagnie du Cambodge |
| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |