Correlation Between CMG Cleantech and BigBen Interactive
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech and BigBen Interactive 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 BigBen Interactive 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 BigBen Interactive, you can compare the effects of market volatilities on CMG Cleantech and BigBen Interactive 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 BigBen Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and BigBen Interactive.
Diversification Opportunities for CMG Cleantech and BigBen Interactive
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CMG and BigBen is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA and BigBen Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BigBen Interactive 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 BigBen Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BigBen Interactive has no effect on the direction of CMG Cleantech i.e., CMG Cleantech and BigBen Interactive go up and down completely randomly.
Pair Corralation between CMG Cleantech and BigBen Interactive
Assuming the 90 days trading horizon CMG Cleantech SA is expected to generate 0.53 times more return on investment than BigBen Interactive. However, CMG Cleantech SA is 1.88 times less risky than BigBen Interactive. It trades about 0.0 of its potential returns per unit of risk. BigBen Interactive is currently generating about -0.54 per unit of risk. If you would invest 120.00 in CMG Cleantech SA on August 27, 2024 and sell it today you would earn a total of 0.00 from holding CMG Cleantech SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Cleantech SA vs. BigBen Interactive
Performance |
| Timeline |
| CMG Cleantech SA |
| BigBen Interactive |
CMG Cleantech and BigBen Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and BigBen Interactive
The main advantage of trading using opposite CMG Cleantech and BigBen Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech position performs unexpectedly, BigBen Interactive 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 BigBen Interactive will offset losses from the drop in BigBen Interactive's long position.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
| BigBen Interactive vs. Nacon Sa | BigBen Interactive vs. Chargeurs SA | BigBen Interactive vs. Claranova SE | BigBen Interactive vs. Trigano 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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