Correlation Between FNP Technologies and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and CMG Cleantech 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 FNP Technologies and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNP Technologies SA and CMG Cleantech SA, you can compare the effects of market volatilities on FNP Technologies and CMG Cleantech 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 FNP Technologies with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and CMG Cleantech.
Diversification Opportunities for FNP Technologies and CMG Cleantech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FNP and CMG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and CMG Cleantech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMG Cleantech SA and FNP Technologies 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 FNP Technologies SA are associated (or correlated) with CMG Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMG Cleantech SA has no effect on the direction of FNP Technologies i.e., FNP Technologies and CMG Cleantech go up and down completely randomly.
Pair Corralation between FNP Technologies and CMG Cleantech
Assuming the 90 days trading horizon FNP Technologies SA is expected to under-perform the CMG Cleantech. In addition to that, FNP Technologies is 1.76 times more volatile than CMG Cleantech SA. It trades about -0.1 of its total potential returns per unit of risk. CMG Cleantech SA is currently generating about 0.06 per unit of volatility. If you would invest 77.00 in CMG Cleantech SA on November 28, 2024 and sell it today you would earn a total of 22.00 from holding CMG Cleantech SA or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. CMG Cleantech SA
Performance |
| Timeline |
| FNP Technologies |
| CMG Cleantech SA |
FNP Technologies and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and CMG Cleantech
The main advantage of trading using opposite FNP Technologies and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, CMG Cleantech 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 CMG Cleantech will offset losses from the drop in CMG Cleantech's long position.| FNP Technologies vs. Fill Up Media | FNP Technologies vs. Innelec Multimedia | FNP Technologies vs. Eutelsat Communications SA | FNP Technologies vs. Diagnostic Medical Systems |
| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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