Correlation Between CM AM and BGF World
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By analyzing existing cross correlation between CM AM Monplus NE and BGF World Gold, you can compare the effects of market volatilities on CM AM and BGF World 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 BGF World. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and BGF World.
Diversification Opportunities for CM AM and BGF World
Pay attention - limited upside
The 3 months correlation between 0P0001F96C and BGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE and BGF World Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF World Gold 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 BGF World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF World Gold has no effect on the direction of CM AM i.e., CM AM and BGF World go up and down completely randomly.
Pair Corralation between CM AM and BGF World
If you would invest 10,584 in CM AM Monplus NE on October 6, 2024 and sell it today you would earn a total of 55.00 from holding CM AM Monplus NE or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CM AM Monplus NE vs. BGF World Gold
Performance |
| Timeline |
| CM AM Monplus |
| BGF World Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CM AM and BGF World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and BGF World
The main advantage of trading using opposite CM AM and BGF World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM position performs unexpectedly, BGF World 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 BGF World will offset losses from the drop in BGF World's long position.The idea behind CM AM Monplus NE and BGF World Gold 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.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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