Correlation Between HAL Trust and CM NV

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

By analyzing existing cross correlation between HAL Trust and CM NV, you can compare the effects of market volatilities on HAL Trust and CM NV 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 HAL Trust with a short position of CM NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and CM NV.

Diversification Opportunities for HAL Trust and CM NV

-0.12

Correlation Coefficient

HAL Trust  CM NV

Good diversification

The 3 months correlation between HAL and CMCOM is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and CM NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM NV and HAL Trust 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 HAL Trust are associated (or correlated) with CM NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM NV has no effect on the direction of HAL Trust i.e., HAL Trust and CM NV go up and down completely randomly.

Pair Corralation between HAL Trust and CM NV

Assuming the 90 days trading horizon HAL Trust is expected to generate 9.06 times less return on investment than CM NV. But when comparing it to its historical volatility, HAL Trust is 7.15 times less risky than CM NV. It trades about 0.11 of its potential returns per unit of risk. CM NV is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  447.00  in CM NV on August 9, 2025 and sell it today you would earn a total of  53.00  from holding CM NV or generate 11.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

HAL Trust  vs.  CM NV

HAL Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in HAL Trust are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, HAL Trust may actually be approaching a critical reversion point that can send shares even higher in December 2025.

CM NV

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CM NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, CM NV may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with HAL Trust and CM NV

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

The idea behind HAL Trust and CM NV 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.