Correlation Between CMG Cleantech and Groupe JAJ
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech and Groupe JAJ 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 Groupe JAJ 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 Groupe JAJ, you can compare the effects of market volatilities on CMG Cleantech and Groupe JAJ 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 Groupe JAJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and Groupe JAJ.
Diversification Opportunities for CMG Cleantech and Groupe JAJ
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CMG and Groupe is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA and Groupe JAJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe JAJ 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 Groupe JAJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe JAJ has no effect on the direction of CMG Cleantech i.e., CMG Cleantech and Groupe JAJ go up and down completely randomly.
Pair Corralation between CMG Cleantech and Groupe JAJ
Assuming the 90 days trading horizon CMG Cleantech SA is expected to generate 0.64 times more return on investment than Groupe JAJ. However, CMG Cleantech SA is 1.55 times less risky than Groupe JAJ. It trades about 0.12 of its potential returns per unit of risk. Groupe JAJ is currently generating about 0.0 per unit of risk. If you would invest 77.00 in CMG Cleantech SA on August 30, 2024 and sell it today you would earn a total of 45.00 from holding CMG Cleantech SA or generate 58.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
CMG Cleantech SA vs. Groupe JAJ
Performance |
| Timeline |
| CMG Cleantech SA |
| Groupe JAJ |
CMG Cleantech and Groupe JAJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and Groupe JAJ
The main advantage of trading using opposite CMG Cleantech and Groupe JAJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech position performs unexpectedly, Groupe JAJ 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 Groupe JAJ will offset losses from the drop in Groupe JAJ's long position.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. NSE SA | CMG Cleantech vs. Manitou BF SA |
| Groupe JAJ vs. ACTEOS SA | Groupe JAJ vs. Augros Cosmetic Packaging | Groupe JAJ vs. BigBen Interactive | Groupe JAJ vs. Centrale dAchat Franaise |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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