Correlation Between Catena AB and K2A Knaust
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By analyzing existing cross correlation between Catena AB and K2A Knaust Andersson, you can compare the effects of market volatilities on Catena AB and K2A Knaust 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 Catena AB with a short position of K2A Knaust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and K2A Knaust.
Diversification Opportunities for Catena AB and K2A Knaust
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catena and K2A is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Catena AB and K2A Knaust Andersson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K2A Knaust Andersson and Catena 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 Catena AB are associated (or correlated) with K2A Knaust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K2A Knaust Andersson has no effect on the direction of Catena AB i.e., Catena AB and K2A Knaust go up and down completely randomly.
Pair Corralation between Catena AB and K2A Knaust
Assuming the 90 days trading horizon Catena AB is expected to generate 1.17 times more return on investment than K2A Knaust. However, Catena AB is 1.17 times more volatile than K2A Knaust Andersson. It trades about -0.03 of its potential returns per unit of risk. K2A Knaust Andersson is currently generating about -0.21 per unit of risk. If you would invest 49,850 in Catena AB on August 30, 2024 and sell it today you would lose (600.00) from holding Catena AB or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Catena AB vs. K2A Knaust Andersson
Performance |
| Timeline |
| Catena AB |
| K2A Knaust Andersson |
Catena AB and K2A Knaust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena AB and K2A Knaust
The main advantage of trading using opposite Catena AB and K2A Knaust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB position performs unexpectedly, K2A Knaust 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 K2A Knaust will offset losses from the drop in K2A Knaust's long position.| Catena AB vs. Fastighets AB Balder | Catena AB vs. Fabege AB | Catena AB vs. Wihlborgs Fastigheter AB | Catena AB vs. AB Sagax |
| K2A Knaust vs. Corem Property Group | K2A Knaust vs. Volati AB | K2A Knaust vs. NP3 Fastigheter AB | K2A Knaust vs. Heimstaden AB Pfd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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