Correlation Between IE00B0H4TS55 and CM AM
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By analyzing existing cross correlation between IE00B0H4TS55 and CM AM Monplus NE, you can compare the effects of market volatilities on IE00B0H4TS55 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 IE00B0H4TS55 with a short position of CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and CM AM.
Diversification Opportunities for IE00B0H4TS55 and CM AM
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IE00B0H4TS55 and 0P0001F96C is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 i.e., IE00B0H4TS55 and CM AM go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and CM AM
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to under-perform the CM AM. In addition to that, IE00B0H4TS55 is 23.03 times more volatile than CM AM Monplus NE. It trades about -0.06 of its total potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.45 per unit of volatility. If you would invest 10,525 in CM AM Monplus NE on September 7, 2024 and sell it today you would earn a total of 86.00 from holding CM AM Monplus NE or generate 0.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
IE00B0H4TS55 vs. CM AM Monplus NE
Performance |
Timeline |
IE00B0H4TS55 |
CM AM Monplus |
IE00B0H4TS55 and CM AM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IE00B0H4TS55 and CM AM
The main advantage of trading using opposite IE00B0H4TS55 and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 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.IE00B0H4TS55 vs. Esfera Robotics R | IE00B0H4TS55 vs. R co Valor F | IE00B0H4TS55 vs. CM AM Monplus NE | IE00B0H4TS55 vs. Echiquier Entrepreneurs G |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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