Correlation Between CMG Cleantech and ATEME SA
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech and ATEME SA 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 Cleantech and ATEME SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMG Cleantech SA and ATEME SA, you can compare the effects of market volatilities on CMG Cleantech and ATEME SA 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 Cleantech with a short position of ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and ATEME SA.
Diversification Opportunities for CMG Cleantech and ATEME SA
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CMG and ATEME is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME SA and CMG Cleantech 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 Cleantech SA are associated (or correlated) with ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of CMG Cleantech i.e., CMG Cleantech and ATEME SA go up and down completely randomly.
Pair Corralation between CMG Cleantech and ATEME SA
Assuming the 90 days trading horizon CMG Cleantech SA is expected to under-perform the ATEME SA. In addition to that, CMG Cleantech is 1.26 times more volatile than ATEME SA. It trades about -0.02 of its total potential returns per unit of risk. ATEME SA is currently generating about -0.01 per unit of volatility. If you would invest 640.00 in ATEME SA on September 4, 2024 and sell it today you would lose (130.00) from holding ATEME SA or give up 20.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CMG Cleantech SA vs. ATEME SA
Performance |
| Timeline |
| CMG Cleantech SA |
| ATEME SA |
CMG Cleantech and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and ATEME SA
The main advantage of trading using opposite CMG Cleantech and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech position performs unexpectedly, ATEME SA 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 ATEME SA will offset losses from the drop in ATEME SA's long position.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
| ATEME SA vs. Metalliance SA | ATEME SA vs. Impulse Fitness Solutions | ATEME SA vs. ZCCM Investments Holdings | ATEME SA vs. Veolia Environnement VE |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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