Correlation Between SA Catana and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both SA Catana and Groupe Guillin 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 Groupe Guillin 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 Groupe Guillin SA, you can compare the effects of market volatilities on SA Catana and Groupe Guillin 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 Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Groupe Guillin.
Diversification Opportunities for SA Catana and Groupe Guillin
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CATG and Groupe is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin SA 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 Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of SA Catana i.e., SA Catana and Groupe Guillin go up and down completely randomly.
Pair Corralation between SA Catana and Groupe Guillin
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Groupe Guillin. In addition to that, SA Catana is 1.23 times more volatile than Groupe Guillin SA. It trades about -0.01 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about 0.05 per unit of volatility. If you would invest 1,762 in Groupe Guillin SA on August 28, 2024 and sell it today you would earn a total of 833.00 from holding Groupe Guillin SA or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Groupe Guillin SA
Performance |
| Timeline |
| SA Catana Group |
| Groupe Guillin SA |
SA Catana and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Groupe Guillin
The main advantage of trading using opposite SA Catana and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Groupe Guillin 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 Groupe Guillin will offset losses from the drop in Groupe Guillin's long position.| SA Catana vs. Invibes Advertising NV | SA Catana vs. Union Technologies Informatique | SA Catana vs. Reworld Media | SA Catana vs. Exail Technologies SA |
| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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