Correlation Between Imerys SA and CMG Cleantech
Can any of the company-specific risk be diversified away by investing in both Imerys SA 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 Imerys SA and CMG Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imerys SA and CMG Cleantech SA, you can compare the effects of market volatilities on Imerys SA 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 Imerys SA with a short position of CMG Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imerys SA and CMG Cleantech.
Diversification Opportunities for Imerys SA and CMG Cleantech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Imerys and CMG is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Imerys 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 Imerys SA 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 Imerys 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 Imerys SA i.e., Imerys SA and CMG Cleantech go up and down completely randomly.
Pair Corralation between Imerys SA and CMG Cleantech
Assuming the 90 days horizon Imerys SA is expected to generate 3.11 times less return on investment than CMG Cleantech. In addition to that, Imerys SA is 1.33 times more volatile than CMG Cleantech SA. It trades about 0.0 of its total potential returns per unit of risk. CMG Cleantech SA is currently generating about 0.01 per unit of volatility. If you would invest 120.00 in CMG Cleantech SA on October 18, 2024 and sell it today you would earn a total of 0.00 from holding CMG Cleantech SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imerys SA vs. CMG Cleantech SA
Performance |
| Timeline |
| Imerys SA |
| CMG Cleantech SA |
Imerys SA and CMG Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imerys SA and CMG Cleantech
The main advantage of trading using opposite Imerys SA and CMG Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imerys SA 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.| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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