Correlation Between CMG Cleantech and Financiere Moncey
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech and Financiere Moncey 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 Financiere Moncey 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 Financiere Moncey SA, you can compare the effects of market volatilities on CMG Cleantech and Financiere Moncey 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 Financiere Moncey. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and Financiere Moncey.
Diversification Opportunities for CMG Cleantech and Financiere Moncey
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CMG and Financiere is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA and Financiere Moncey SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiere Moncey 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 Financiere Moncey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiere Moncey has no effect on the direction of CMG Cleantech i.e., CMG Cleantech and Financiere Moncey go up and down completely randomly.
Pair Corralation between CMG Cleantech and Financiere Moncey
Assuming the 90 days trading horizon CMG Cleantech SA is expected to under-perform the Financiere Moncey. But the stock apears to be less risky and, when comparing its historical volatility, CMG Cleantech SA is 57.35 times less risky than Financiere Moncey. The stock trades about 0.0 of its potential returns per unit of risk. The Financiere Moncey SA is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 7,392 in Financiere Moncey SA on September 29, 2024 and sell it today you would earn a total of 6,492 from holding Financiere Moncey SA or generate 87.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
CMG Cleantech SA vs. Financiere Moncey SA
Performance |
| Timeline |
| CMG Cleantech SA |
| Financiere Moncey |
CMG Cleantech and Financiere Moncey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and Financiere Moncey
The main advantage of trading using opposite CMG Cleantech and Financiere Moncey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech position performs unexpectedly, Financiere Moncey 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 Financiere Moncey will offset losses from the drop in Financiere Moncey's long position.| CMG Cleantech vs. Imerys SA | CMG Cleantech vs. Vallourec | CMG Cleantech vs. Derichebourg | CMG Cleantech vs. Soitec SA |
| Financiere Moncey vs. Innelec Multimedia | Financiere Moncey vs. CMG Cleantech SA | Financiere Moncey vs. Groupe Pizzorno Environnement | Financiere Moncey vs. Eutelsat Communications 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |