Correlation Between Guandao Puer and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Guandao Puer 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 Guandao Puer and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guandao Puer Investment and CMG Cleantech SA, you can compare the effects of market volatilities on Guandao Puer 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 Guandao Puer with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guandao Puer and CMG Cleantech.
Diversification Opportunities for Guandao Puer and CMG Cleantech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guandao and CMG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guandao Puer Investment 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 Guandao Puer 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 Guandao Puer Investment 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 Guandao Puer i.e., Guandao Puer and CMG Cleantech go up and down completely randomly.
Pair Corralation between Guandao Puer and CMG Cleantech
If you would invest 45.00 in Guandao Puer Investment on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Guandao Puer Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.33% |
| Values | Daily Returns |
Guandao Puer Investment vs. CMG Cleantech SA
Performance |
| Timeline |
| Guandao Puer Investment |
| CMG Cleantech SA |
Guandao Puer and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guandao Puer and CMG Cleantech
The main advantage of trading using opposite Guandao Puer and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guandao Puer 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.| Guandao Puer vs. Agrogeneration | Guandao Puer vs. Manitou BF SA | Guandao Puer vs. Ossiam Minimum Variance | Guandao Puer vs. Granite 3x LVMH |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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