Correlation Between Damartex and SA Catana
Can any of the company-specific risk be diversified away by investing in both Damartex and SA Catana 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 Damartex and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damartex and SA Catana Group, you can compare the effects of market volatilities on Damartex and SA Catana 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 Damartex with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damartex and SA Catana.
Diversification Opportunities for Damartex and SA Catana
Pay attention - limited upside
The 3 months correlation between Damartex and CATG is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Damartex and SA Catana Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SA Catana Group and Damartex 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 Damartex are associated (or correlated) with SA Catana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SA Catana Group has no effect on the direction of Damartex i.e., Damartex and SA Catana go up and down completely randomly.
Pair Corralation between Damartex and SA Catana
Assuming the 90 days trading horizon Damartex is expected to generate 1.22 times more return on investment than SA Catana. However, Damartex is 1.22 times more volatile than SA Catana Group. It trades about 0.15 of its potential returns per unit of risk. SA Catana Group is currently generating about -0.05 per unit of risk. If you would invest 345.00 in Damartex on August 31, 2024 and sell it today you would earn a total of 229.00 from holding Damartex or generate 66.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Damartex vs. SA Catana Group
Performance |
| Timeline |
| Damartex |
| SA Catana Group |
Damartex and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damartex and SA Catana
The main advantage of trading using opposite Damartex and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damartex position performs unexpectedly, SA Catana 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 SA Catana will offset losses from the drop in SA Catana's long position.| Damartex vs. Vente Unique | Damartex vs. Groupe Sfpi | Damartex vs. Cegedim SA | Damartex vs. SA Catana Group |
| SA Catana vs. Trigano SA | SA Catana vs. Bonduelle SCA | SA Catana vs. Imerys SA | SA Catana vs. Manitou BF SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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