Correlation Between Catella AB and Eastnine
Can any of the company-specific risk be diversified away by investing in both Catella AB and Eastnine 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 Catella AB and Eastnine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catella AB A and Eastnine AB, you can compare the effects of market volatilities on Catella AB and Eastnine 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 Catella AB with a short position of Eastnine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catella AB and Eastnine.
Diversification Opportunities for Catella AB and Eastnine
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catella and Eastnine is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Catella AB A and Eastnine AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastnine AB and Catella AB 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 Catella AB A are associated (or correlated) with Eastnine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastnine AB has no effect on the direction of Catella AB i.e., Catella AB and Eastnine go up and down completely randomly.
Pair Corralation between Catella AB and Eastnine
Assuming the 90 days trading horizon Catella AB A is expected to generate 2.94 times more return on investment than Eastnine. However, Catella AB is 2.94 times more volatile than Eastnine AB. It trades about 0.03 of its potential returns per unit of risk. Eastnine AB is currently generating about 0.07 per unit of risk. If you would invest 2,349 in Catella AB A on September 14, 2024 and sell it today you would earn a total of 291.00 from holding Catella AB A or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Catella AB A vs. Eastnine AB
Performance |
| Timeline |
| Catella AB A |
| Eastnine AB |
Catella AB and Eastnine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catella AB and Eastnine
The main advantage of trading using opposite Catella AB and Eastnine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catella AB position performs unexpectedly, Eastnine 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 Eastnine will offset losses from the drop in Eastnine's long position.| Catella AB vs. Catella AB | Catella AB vs. Svolder AB | Catella AB vs. Beijer Alma AB | Catella AB vs. BTS Group AB |
| Eastnine vs. Catella AB | Eastnine vs. Catella AB A | Eastnine vs. KABE Group AB | Eastnine vs. IAR Systems Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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