Correlation Between SA Catana and Delfingen
Can any of the company-specific risk be diversified away by investing in both SA Catana and Delfingen 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 Delfingen 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 Delfingen, you can compare the effects of market volatilities on SA Catana and Delfingen 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 Delfingen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Delfingen.
Diversification Opportunities for SA Catana and Delfingen
Very weak diversification
The 3 months correlation between CATG and Delfingen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Delfingen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delfingen 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 Delfingen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delfingen has no effect on the direction of SA Catana i.e., SA Catana and Delfingen go up and down completely randomly.
Pair Corralation between SA Catana and Delfingen
Assuming the 90 days trading horizon SA Catana Group is expected to generate 1.23 times more return on investment than Delfingen. However, SA Catana is 1.23 times more volatile than Delfingen. It trades about 0.04 of its potential returns per unit of risk. Delfingen is currently generating about -0.54 per unit of risk. If you would invest 445.00 in SA Catana Group on August 29, 2024 and sell it today you would earn a total of 7.00 from holding SA Catana Group or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Delfingen
Performance |
| Timeline |
| SA Catana Group |
| Delfingen |
SA Catana and Delfingen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Delfingen
The main advantage of trading using opposite SA Catana and Delfingen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Delfingen 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 Delfingen will offset losses from the drop in Delfingen'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 |
| Delfingen vs. Akwel SA | Delfingen vs. Groupe Guillin SA | Delfingen vs. Burelle SA | Delfingen vs. SA Catana 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |