Correlation Between CMG Cleantech and Compagnie Des
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech and Compagnie Des 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 Compagnie Des 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 Compagnie des Tramways, you can compare the effects of market volatilities on CMG Cleantech and Compagnie Des 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 Compagnie Des. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and Compagnie Des.
Diversification Opportunities for CMG Cleantech and Compagnie Des
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CMG and Compagnie is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech SA and Compagnie des Tramways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie des Tramways 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 Compagnie Des. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie des Tramways has no effect on the direction of CMG Cleantech i.e., CMG Cleantech and Compagnie Des go up and down completely randomly.
Pair Corralation between CMG Cleantech and Compagnie Des
If you would invest 920,000 in Compagnie des Tramways on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Compagnie des Tramways or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 38.1% |
| Values | Daily Returns |
CMG Cleantech SA vs. Compagnie des Tramways
Performance |
| Timeline |
| CMG Cleantech SA |
| Compagnie des Tramways |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CMG Cleantech and Compagnie Des Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and Compagnie Des
The main advantage of trading using opposite CMG Cleantech and Compagnie Des positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech position performs unexpectedly, Compagnie Des 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 Compagnie Des will offset losses from the drop in Compagnie Des' long position.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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