Correlation Between CM AM and ALM Classic
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By analyzing existing cross correlation between CM AM Monplus NE and ALM Classic RA, you can compare the effects of market volatilities on CM AM and ALM Classic 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 Classic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and ALM Classic.
Diversification Opportunities for CM AM and ALM Classic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0001F96C and ALM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and ALM Classic RA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Classic RA 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 Classic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Classic RA has no effect on the direction of CM AM i.e., CM AM and ALM Classic go up and down completely randomly.
Pair Corralation between CM AM and ALM Classic
Assuming the 90 days trading horizon CM AM is expected to generate 2.14 times less return on investment than ALM Classic. But when comparing it to its historical volatility, CM AM Monplus NE is 23.8 times less risky than ALM Classic. It trades about 1.43 of its potential returns per unit of risk. ALM Classic RA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 33,013 in ALM Classic RA on September 11, 2024 and sell it today you would earn a total of 5,299 from holding ALM Classic RA or generate 16.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.6% |
Values | Daily Returns |
CM AM Monplus NE vs. ALM Classic RA
Performance |
Timeline |
CM AM Monplus |
ALM Classic RA |
CM AM and ALM Classic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CM AM and ALM Classic
The main advantage of trading using opposite CM AM and ALM Classic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, ALM Classic 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 Classic will offset losses from the drop in ALM Classic's long position.CM AM vs. Renaissance Europe C | CM AM vs. SIVERS SEMICONDUCTORS AB | CM AM vs. Darden Restaurants | CM AM vs. Q2M Managementberatung AG |
ALM Classic vs. ALM ES Actions | ALM Classic vs. ALM Offensif | ALM Classic vs. Esfera Robotics R | ALM Classic 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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