Correlation Between Piscines Desjoyaux and SA Catana
Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux 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 Piscines Desjoyaux and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piscines Desjoyaux SA and SA Catana Group, you can compare the effects of market volatilities on Piscines Desjoyaux 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 Piscines Desjoyaux with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and SA Catana.
Diversification Opportunities for Piscines Desjoyaux and SA Catana
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Piscines and CATG is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA 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 Piscines Desjoyaux 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 Piscines Desjoyaux SA 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 Piscines Desjoyaux i.e., Piscines Desjoyaux and SA Catana go up and down completely randomly.
Pair Corralation between Piscines Desjoyaux and SA Catana
Assuming the 90 days trading horizon Piscines Desjoyaux SA is expected to under-perform the SA Catana. But the stock apears to be less risky and, when comparing its historical volatility, Piscines Desjoyaux SA is 2.05 times less risky than SA Catana. The stock trades about -0.14 of its potential returns per unit of risk. The SA Catana Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 442.00 in SA Catana Group on August 26, 2024 and sell it today you would earn a total of 26.00 from holding SA Catana Group or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piscines Desjoyaux SA vs. SA Catana Group
Performance |
| Timeline |
| Piscines Desjoyaux |
| SA Catana Group |
Piscines Desjoyaux and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piscines Desjoyaux and SA Catana
The main advantage of trading using opposite Piscines Desjoyaux and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piscines Desjoyaux 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.| Piscines Desjoyaux vs. SA Catana Group | Piscines Desjoyaux vs. Thermador Groupe SA | Piscines Desjoyaux vs. Trigano SA | Piscines Desjoyaux vs. Groupe Guillin SA |
| SA Catana vs. Veolia Environnement VE | SA Catana vs. Jacquet Metal Service | SA Catana vs. Fiducial Office Solutions | SA Catana vs. Bilendi |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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