Correlation Between SA Catana and Sidetrade
Can any of the company-specific risk be diversified away by investing in both SA Catana and Sidetrade 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 SA Catana and Sidetrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SA Catana Group and Sidetrade, you can compare the effects of market volatilities on SA Catana and Sidetrade 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 SA Catana with a short position of Sidetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Sidetrade.
Diversification Opportunities for SA Catana and Sidetrade
Very good diversification
The 3 months correlation between CATG and Sidetrade is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Sidetrade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidetrade and SA Catana 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 SA Catana Group are associated (or correlated) with Sidetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidetrade has no effect on the direction of SA Catana i.e., SA Catana and Sidetrade go up and down completely randomly.
Pair Corralation between SA Catana and Sidetrade
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Sidetrade. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.0 times less risky than Sidetrade. The stock trades about -0.02 of its potential returns per unit of risk. The Sidetrade is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,300 in Sidetrade on August 30, 2024 and sell it today you would earn a total of 8,200 from holding Sidetrade or generate 57.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Sidetrade
Performance |
| Timeline |
| SA Catana Group |
| Sidetrade |
SA Catana and Sidetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Sidetrade
The main advantage of trading using opposite SA Catana and Sidetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Sidetrade 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 Sidetrade will offset losses from the drop in Sidetrade's long position.| SA Catana vs. Affluent Medical SAS | SA Catana vs. Gaztransport Technigaz SAS | SA Catana vs. Onlineformapro SA | SA Catana vs. Broadpeak SA |
| Sidetrade vs. Aubay Socit Anonyme | Sidetrade vs. Infotel SA | Sidetrade vs. IT Link | Sidetrade 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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