Correlation Between Vitec Software and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Vitec Software and CATLIN GROUP 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 Vitec Software and CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vitec Software Group and CATLIN GROUP , you can compare the effects of market volatilities on Vitec Software and CATLIN GROUP 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 Vitec Software with a short position of CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitec Software and CATLIN GROUP.
Diversification Opportunities for Vitec Software and CATLIN GROUP
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vitec and CATLIN is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vitec Software Group and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP and Vitec Software 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 Vitec Software Group are associated (or correlated) with CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Vitec Software i.e., Vitec Software and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Vitec Software and CATLIN GROUP
Assuming the 90 days trading horizon Vitec Software Group is expected to generate 4.67 times more return on investment than CATLIN GROUP. However, Vitec Software is 4.67 times more volatile than CATLIN GROUP . It trades about 0.07 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.23 per unit of risk. If you would invest 51,513 in Vitec Software Group on October 12, 2024 and sell it today you would earn a total of 1,295 from holding Vitec Software Group or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Vitec Software Group vs. CATLIN GROUP
Performance |
| Timeline |
| Vitec Software Group |
| CATLIN GROUP |
Vitec Software and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vitec Software and CATLIN GROUP
The main advantage of trading using opposite Vitec Software and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitec Software position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Vitec Software vs. Walmart | Vitec Software vs. BYD Co | Vitec Software vs. Volkswagen AG | Vitec Software vs. Volkswagen AG Non Vtg |
| CATLIN GROUP vs. Sartorius Stedim Biotech | CATLIN GROUP vs. Aptitude Software Group | CATLIN GROUP vs. Gaztransport et Technigaz | CATLIN GROUP vs. Polar Capital Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |