Correlation Between CM AM and ALM Offensif
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By analyzing existing cross correlation between CM AM Monplus NE and ALM Offensif, you can compare the effects of market volatilities on CM AM and ALM Offensif 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 CM AM with a short position of ALM Offensif. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and ALM Offensif.
Diversification Opportunities for CM AM and ALM Offensif
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0001F96C and ALM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and ALM Offensif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Offensif and CM AM 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 CM AM Monplus NE are associated (or correlated) with ALM Offensif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Offensif has no effect on the direction of CM AM i.e., CM AM and ALM Offensif go up and down completely randomly.
Pair Corralation between CM AM and ALM Offensif
Assuming the 90 days trading horizon CM AM is expected to generate 7.71 times less return on investment than ALM Offensif. But when comparing it to its historical volatility, CM AM Monplus NE is 51.96 times less risky than ALM Offensif. It trades about 1.45 of its potential returns per unit of risk. ALM Offensif is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 30,202 in ALM Offensif on September 7, 2024 and sell it today you would earn a total of 1,930 from holding ALM Offensif or generate 6.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CM AM Monplus NE vs. ALM Offensif
Performance |
Timeline |
CM AM Monplus |
ALM Offensif |
CM AM and ALM Offensif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CM AM and ALM Offensif
The main advantage of trading using opposite CM AM and ALM Offensif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, ALM Offensif 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 ALM Offensif will offset losses from the drop in ALM Offensif's long position.CM AM vs. Esfera Robotics R | CM AM vs. R co Valor F | CM AM vs. IE00B0H4TS55 | CM AM vs. Echiquier Entrepreneurs G |
ALM Offensif vs. ALM ES Actions | ALM Offensif vs. ALM Classic RA | ALM Offensif vs. Esfera Robotics R | ALM Offensif vs. R co Valor F |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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