Correlation Between M2M GROUP and CREDIT IMMOBILIER

Can any of the company-specific risk be diversified away by investing in both M2M GROUP and CREDIT IMMOBILIER 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 M2M GROUP and CREDIT IMMOBILIER into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between M2M GROUP and CREDIT IMMOBILIER ET, you can compare the effects of market volatilities on M2M GROUP and CREDIT IMMOBILIER 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 M2M GROUP with a short position of CREDIT IMMOBILIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of M2M GROUP and CREDIT IMMOBILIER.

Diversification Opportunities for M2M GROUP and CREDIT IMMOBILIER

-0.25

Correlation Coefficient

M2M GROUP  CREDIT IMMOBILIER

Very good diversification

The 3 months correlation between M2M and CREDIT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding M2M GROUP and CREDIT IMMOBILIER ET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT IMMOBILIER and M2M GROUP 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 M2M GROUP are associated (or correlated) with CREDIT IMMOBILIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT IMMOBILIER has no effect on the direction of M2M GROUP i.e., M2M GROUP and CREDIT IMMOBILIER go up and down completely randomly.

Pair Corralation between M2M GROUP and CREDIT IMMOBILIER

Assuming the 90 days trading horizon M2M GROUP is expected to under-perform the CREDIT IMMOBILIER. In addition to that, M2M GROUP is 1.44 times more volatile than CREDIT IMMOBILIER ET. It trades about -0.04 of its total potential returns per unit of risk. CREDIT IMMOBILIER ET is currently generating about 0.11 per unit of volatility. If you would invest  41,100  in CREDIT IMMOBILIER ET on December 2, 2024 and sell it today you would earn a total of  4,400  from holding CREDIT IMMOBILIER ET or generate 10.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

M2M GROUP  vs.  CREDIT IMMOBILIER ET

M2M GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days M2M GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, M2M GROUP is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CREDIT IMMOBILIER

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CREDIT IMMOBILIER ET are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical indicators, CREDIT IMMOBILIER may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with M2M GROUP and CREDIT IMMOBILIER

The main advantage of trading using opposite M2M GROUP and CREDIT IMMOBILIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M2M GROUP position performs unexpectedly, CREDIT IMMOBILIER 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 CREDIT IMMOBILIER will offset losses from the drop in CREDIT IMMOBILIER's long position.

The idea behind M2M GROUP and CREDIT IMMOBILIER ET 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 CEOs Directory module to screen CEOs from public companies around the world.