Correlation Between SA Catana and Wallix Group
Can any of the company-specific risk be diversified away by investing in both SA Catana and Wallix Group 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 Wallix Group 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 Wallix Group SA, you can compare the effects of market volatilities on SA Catana and Wallix Group 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 Wallix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Wallix Group.
Diversification Opportunities for SA Catana and Wallix Group
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CATG and Wallix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Wallix Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallix Group 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 Wallix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallix Group SA has no effect on the direction of SA Catana i.e., SA Catana and Wallix Group go up and down completely randomly.
Pair Corralation between SA Catana and Wallix Group
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Wallix Group. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.57 times less risky than Wallix Group. The stock trades about -0.02 of its potential returns per unit of risk. The Wallix Group SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,112 in Wallix Group SA on August 30, 2024 and sell it today you would lose (112.00) from holding Wallix Group SA or give up 10.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Wallix Group SA
Performance |
| Timeline |
| SA Catana Group |
| Wallix Group SA |
SA Catana and Wallix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Wallix Group
The main advantage of trading using opposite SA Catana and Wallix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Wallix Group 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 Wallix Group will offset losses from the drop in Wallix Group'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 |
| Wallix Group vs. Esker SA | Wallix Group vs. Kalray SA | Wallix Group vs. Claranova SE | Wallix Group vs. Lumibird 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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