Correlation Between SA Catana and Fill Up
Can any of the company-specific risk be diversified away by investing in both SA Catana and Fill Up 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 Fill Up 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 Fill Up Media, you can compare the effects of market volatilities on SA Catana and Fill Up 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 Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Fill Up.
Diversification Opportunities for SA Catana and Fill Up
Average diversification
The 3 months correlation between CATG and Fill is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media 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 Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of SA Catana i.e., SA Catana and Fill Up go up and down completely randomly.
Pair Corralation between SA Catana and Fill Up
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Fill Up. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.02 times less risky than Fill Up. The stock trades about -0.02 of its potential returns per unit of risk. The Fill Up Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 593.00 in Fill Up Media on November 19, 2024 and sell it today you would earn a total of 27.00 from holding Fill Up Media or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
SA Catana Group vs. Fill Up Media
Performance |
| Timeline |
| SA Catana Group |
| Fill Up Media |
SA Catana and Fill Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Fill Up
The main advantage of trading using opposite SA Catana and Fill Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Fill Up 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 Fill Up will offset losses from the drop in Fill Up's long position.| SA Catana vs. Covivio Hotels | SA Catana vs. Hotelim Socit Anonyme | SA Catana vs. Gaztransport Technigaz SAS | SA Catana vs. Lexibook Linguistic Electronic |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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