Correlation Between SA Catana and Enertime SAS
Can any of the company-specific risk be diversified away by investing in both SA Catana and Enertime SAS 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 Enertime SAS 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 Enertime SAS, you can compare the effects of market volatilities on SA Catana and Enertime SAS 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 Enertime SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Enertime SAS.
Diversification Opportunities for SA Catana and Enertime SAS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CATG and Enertime is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Enertime SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enertime SAS 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 Enertime SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enertime SAS has no effect on the direction of SA Catana i.e., SA Catana and Enertime SAS go up and down completely randomly.
Pair Corralation between SA Catana and Enertime SAS
Assuming the 90 days trading horizon SA Catana Group is expected to generate 0.35 times more return on investment than Enertime SAS. However, SA Catana Group is 2.83 times less risky than Enertime SAS. It trades about -0.02 of its potential returns per unit of risk. Enertime SAS is currently generating about -0.04 per unit of risk. If you would invest 611.00 in SA Catana Group on August 30, 2024 and sell it today you would lose (153.00) from holding SA Catana Group or give up 25.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
SA Catana Group vs. Enertime SAS
Performance |
| Timeline |
| SA Catana Group |
| Enertime SAS |
SA Catana and Enertime SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Enertime SAS
The main advantage of trading using opposite SA Catana and Enertime SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Enertime SAS 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 Enertime SAS will offset losses from the drop in Enertime SAS'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 |
| Enertime SAS vs. Claranova SE | Enertime SAS vs. SA Catana Group | Enertime SAS vs. Mediantechn | Enertime SAS vs. Groupe LDLC 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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