Correlation Between Hotelim Socit and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Hotelim Socit 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 Hotelim Socit and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotelim Socit Anonyme and CMG Cleantech SA, you can compare the effects of market volatilities on Hotelim Socit 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 Hotelim Socit with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotelim Socit and CMG Cleantech.
Diversification Opportunities for Hotelim Socit and CMG Cleantech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotelim and CMG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hotelim Socit Anonyme 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 Hotelim Socit 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 Hotelim Socit Anonyme 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 Hotelim Socit i.e., Hotelim Socit and CMG Cleantech go up and down completely randomly.
Pair Corralation between Hotelim Socit and CMG Cleantech
If you would invest 3,940 in Hotelim Socit Anonyme on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Hotelim Socit Anonyme or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotelim Socit Anonyme vs. CMG Cleantech SA
Performance |
| Timeline |
| Hotelim Socit Anonyme |
| CMG Cleantech SA |
Hotelim Socit and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotelim Socit and CMG Cleantech
The main advantage of trading using opposite Hotelim Socit and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotelim Socit 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.| Hotelim Socit vs. Les Hotels Bav | Hotelim Socit vs. Groupe Partouche SA | Hotelim Socit vs. Centrale dAchat Franaise | Hotelim Socit vs. Manitou BF SA |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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