Correlation Between Catena AB and Train Alliance
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By analyzing existing cross correlation between Catena AB and Train Alliance Sweden, you can compare the effects of market volatilities on Catena AB and Train Alliance 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 Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and Train Alliance.
Diversification Opportunities for Catena AB and Train Alliance
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catena and Train is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Catena AB and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden 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 Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of Catena AB i.e., Catena AB and Train Alliance go up and down completely randomly.
Pair Corralation between Catena AB and Train Alliance
Assuming the 90 days trading horizon Catena AB is expected to generate 1.23 times more return on investment than Train Alliance. However, Catena AB is 1.23 times more volatile than Train Alliance Sweden. It trades about -0.12 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.38 per unit of risk. If you would invest 50,800 in Catena AB on August 29, 2024 and sell it today you would lose (2,150) from holding Catena AB or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena AB vs. Train Alliance Sweden
Performance |
| Timeline |
| Catena AB |
| Train Alliance Sweden |
Catena AB and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena AB and Train Alliance
The main advantage of trading using opposite Catena AB and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance'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 |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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