Correlation Between CMG Holdings and Beyond Commerce

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

By analyzing existing cross correlation between CMG Holdings Group and Beyond Commerce, you can compare the effects of market volatilities on CMG Holdings and Beyond Commerce 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 Holdings with a short position of Beyond Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and Beyond Commerce.

Diversification Opportunities for CMG Holdings and Beyond Commerce

0.35

Correlation Coefficient

CMG Holdings  Beyond Commerce

Weak diversification

The 3 months correlation between CMG and Beyond is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and Beyond Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Commerce and CMG Holdings 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 Holdings Group are associated (or correlated) with Beyond Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Commerce has no effect on the direction of CMG Holdings i.e., CMG Holdings and Beyond Commerce go up and down completely randomly.

Pair Corralation between CMG Holdings and Beyond Commerce

Given the investment horizon of 90 days CMG Holdings is expected to generate 12.68 times less return on investment than Beyond Commerce. But when comparing it to its historical volatility, CMG Holdings Group is 3.32 times less risky than Beyond Commerce. It trades about 0.03 of its potential returns per unit of risk. Beyond Commerce is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Beyond Commerce on December 27, 2024 and sell it today you would lose (0.01) from holding Beyond Commerce or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CMG Holdings Group  vs.  Beyond Commerce

CMG Holdings Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CMG Holdings Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, CMG Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Beyond Commerce

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Commerce are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Beyond Commerce exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CMG Holdings and Beyond Commerce

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

The idea behind CMG Holdings Group and Beyond Commerce 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.