Correlation Between Cmg Tactical and Cmg Longshort

Can any of the company-specific risk be diversified away by investing in both Cmg Tactical and Cmg Longshort 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 Cmg Tactical and Cmg Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cmg Tactical All and Cmg Longshort Fund, you can compare the effects of market volatilities on Cmg Tactical and Cmg Longshort 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 Cmg Tactical with a short position of Cmg Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Tactical and Cmg Longshort.

Diversification Opportunities for Cmg Tactical and Cmg Longshort

0.0

Correlation Coefficient

Cmg Tactical  Cmg Longshort

Pay attention - limited upside

The 3 months correlation between Cmg and Cmg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Tactical All and Cmg Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cmg Longshort and Cmg Tactical 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 Cmg Tactical All are associated (or correlated) with Cmg Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cmg Longshort has no effect on the direction of Cmg Tactical i.e., Cmg Tactical and Cmg Longshort go up and down completely randomly.

Pair Corralation between Cmg Tactical and Cmg Longshort

If you would invest  0.00  in Cmg Longshort Fund on February 4, 2024 and sell it today you would earn a total of  0.00  from holding Cmg Longshort Fund or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cmg Tactical All  vs.  Cmg Longshort Fund

Cmg Tactical All

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cmg Tactical All has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cmg Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cmg Longshort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cmg Longshort Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Cmg Longshort is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cmg Tactical and Cmg Longshort

The main advantage of trading using opposite Cmg Tactical and Cmg Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Tactical position performs unexpectedly, Cmg Longshort 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 Cmg Longshort will offset losses from the drop in Cmg Longshort's long position.

The idea behind Cmg Tactical All and Cmg Longshort Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.