Correlation Between ALM Classic and CM AM
Specify exactly 2 symbols:
By analyzing existing cross correlation between ALM Classic RA and CM AM Monplus NE, you can compare the effects of market volatilities on ALM Classic and CM AM 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 ALM Classic with a short position of CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALM Classic and CM AM.
Diversification Opportunities for ALM Classic and CM AM
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ALM and 0P0001F96C is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ALM Classic RA and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus and ALM Classic 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 ALM Classic RA are associated (or correlated) with CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of ALM Classic i.e., ALM Classic and CM AM go up and down completely randomly.
Pair Corralation between ALM Classic and CM AM
Assuming the 90 days trading horizon ALM Classic RA is expected to generate 17.75 times more return on investment than CM AM. However, ALM Classic is 17.75 times more volatile than CM AM Monplus NE. It trades about 0.4 of its potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.01 per unit of risk. If you would invest 37,639 in ALM Classic RA on September 8, 2024 and sell it today you would earn a total of 594.00 from holding ALM Classic RA or generate 1.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
ALM Classic RA vs. CM AM Monplus NE
Performance |
Timeline |
ALM Classic RA |
CM AM Monplus |
ALM Classic and CM AM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALM Classic and CM AM
The main advantage of trading using opposite ALM Classic and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALM Classic position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.ALM Classic vs. ALM ES Actions | ALM Classic vs. ALM Offensif | ALM Classic vs. Esfera Robotics R | ALM Classic vs. R co Valor F |
CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. Echiquier Entrepreneurs G |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |