Correlation Between North Bay and CMG Holdings
Can any of the company-specific risk be diversified away by investing in both North Bay and CMG Holdings 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 North Bay and CMG Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Bay Resources and CMG Holdings Group, you can compare the effects of market volatilities on North Bay and CMG Holdings 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 North Bay with a short position of CMG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Bay and CMG Holdings.
Diversification Opportunities for North Bay and CMG Holdings
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between North and CMG is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding North Bay Resources and CMG Holdings Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMG Holdings Group and North Bay 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 North Bay Resources are associated (or correlated) with CMG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMG Holdings Group has no effect on the direction of North Bay i.e., North Bay and CMG Holdings go up and down completely randomly.
Pair Corralation between North Bay and CMG Holdings
Given the investment horizon of 90 days North Bay is expected to generate 4.09 times less return on investment than CMG Holdings. In addition to that, North Bay is 1.77 times more volatile than CMG Holdings Group. It trades about 0.01 of its total potential returns per unit of risk. CMG Holdings Group is currently generating about 0.1 per unit of volatility. If you would invest 0.16 in CMG Holdings Group on September 1, 2024 and sell it today you would earn a total of 0.02 from holding CMG Holdings Group or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
North Bay Resources vs. CMG Holdings Group
Performance |
| Timeline |
| North Bay Resources |
| CMG Holdings Group |
North Bay and CMG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Bay and CMG Holdings
The main advantage of trading using opposite North Bay and CMG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Bay position performs unexpectedly, CMG Holdings 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 Holdings will offset losses from the drop in CMG Holdings' long position.| North Bay vs. Defiance Silver Corp | North Bay vs. HUMANA INC | North Bay vs. SCOR PK | North Bay vs. Aquagold International |
| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay Resources |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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