Correlation Between SA Catana and Invibes Advertising
Can any of the company-specific risk be diversified away by investing in both SA Catana and Invibes Advertising 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 Invibes Advertising 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 Invibes Advertising NV, you can compare the effects of market volatilities on SA Catana and Invibes Advertising 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 Invibes Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Invibes Advertising.
Diversification Opportunities for SA Catana and Invibes Advertising
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CATG and Invibes is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Invibes Advertising NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invibes Advertising 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 Invibes Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invibes Advertising has no effect on the direction of SA Catana i.e., SA Catana and Invibes Advertising go up and down completely randomly.
Pair Corralation between SA Catana and Invibes Advertising
Assuming the 90 days trading horizon SA Catana Group is expected to generate 0.54 times more return on investment than Invibes Advertising. However, SA Catana Group is 1.84 times less risky than Invibes Advertising. It trades about -0.02 of its potential returns per unit of risk. Invibes Advertising NV 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 | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Invibes Advertising NV
Performance |
| Timeline |
| SA Catana Group |
| Invibes Advertising |
SA Catana and Invibes Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Invibes Advertising
The main advantage of trading using opposite SA Catana and Invibes Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Invibes Advertising 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 Invibes Advertising will offset losses from the drop in Invibes Advertising'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 |
| Invibes Advertising vs. Grolleau SAS | Invibes Advertising vs. Hydrogene De France | Invibes Advertising vs. Trigano SA | Invibes Advertising 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |