Correlation Between Hotel Majestic and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic 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 Hotel Majestic and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Majestic Cannes and CMG Cleantech SA, you can compare the effects of market volatilities on Hotel Majestic 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 Hotel Majestic with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and CMG Cleantech.
Diversification Opportunities for Hotel Majestic and CMG Cleantech
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hotel and CMG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes 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 Hotel Majestic 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 Hotel Majestic Cannes 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 Hotel Majestic i.e., Hotel Majestic and CMG Cleantech go up and down completely randomly.
Pair Corralation between Hotel Majestic and CMG Cleantech
If you would invest 120.00 in CMG Cleantech SA on September 3, 2024 and sell it today you would earn a total of 3.00 from holding CMG Cleantech SA or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Majestic Cannes vs. CMG Cleantech SA
Performance |
| Timeline |
| Hotel Majestic Cannes |
| CMG Cleantech SA |
Hotel Majestic and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and CMG Cleantech
The main advantage of trading using opposite Hotel Majestic and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic 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.| Hotel Majestic vs. Affluent Medical SAS | Hotel Majestic vs. Gaztransport Technigaz SAS | Hotel Majestic vs. Boiron SA | Hotel Majestic vs. Jacquet Metal Service |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |