Correlation Between SMX Public and CBIZ
Can any of the company-specific risk be diversified away by investing in both SMX Public and CBIZ 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 SMX Public and CBIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMX Public Limited and CBIZ Inc, you can compare the effects of market volatilities on SMX Public and CBIZ 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 SMX Public with a short position of CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMX Public and CBIZ.
Diversification Opportunities for SMX Public and CBIZ
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SMX and CBIZ is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SMX Public Limited and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc and SMX Public 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 SMX Public Limited are associated (or correlated) with CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of SMX Public i.e., SMX Public and CBIZ go up and down completely randomly.
Pair Corralation between SMX Public and CBIZ
Considering the 90-day investment horizon SMX Public Limited is expected to under-perform the CBIZ. In addition to that, SMX Public is 7.82 times more volatile than CBIZ Inc. It trades about -0.08 of its total potential returns per unit of risk. CBIZ Inc is currently generating about 0.07 per unit of volatility. If you would invest 5,843 in CBIZ Inc on August 27, 2024 and sell it today you would earn a total of 2,236 from holding CBIZ Inc or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMX Public Limited vs. CBIZ Inc
Performance |
| Timeline |
| SMX Public Limited |
| CBIZ Inc |
SMX Public and CBIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMX Public and CBIZ
The main advantage of trading using opposite SMX Public and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMX Public position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's long position.| SMX Public vs. Team Inc | SMX Public vs. Lichen China Limited | SMX Public vs. System1 | SMX Public vs. Eastman Kodak Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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