Correlation Between SA Catana and Mediantechn
Can any of the company-specific risk be diversified away by investing in both SA Catana and Mediantechn 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 Mediantechn 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 Mediantechn, you can compare the effects of market volatilities on SA Catana and Mediantechn 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 Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Mediantechn.
Diversification Opportunities for SA Catana and Mediantechn
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between CATG and Mediantechn is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn 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 Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of SA Catana i.e., SA Catana and Mediantechn go up and down completely randomly.
Pair Corralation between SA Catana and Mediantechn
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Mediantechn. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 2.74 times less risky than Mediantechn. The stock trades about 0.0 of its potential returns per unit of risk. The Mediantechn is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Mediantechn on September 19, 2024 and sell it today you would lose (95.00) from holding Mediantechn or give up 21.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Mediantechn
Performance |
| Timeline |
| SA Catana Group |
| Mediantechn |
SA Catana and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Mediantechn
The main advantage of trading using opposite SA Catana and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| SA Catana vs. Fountaine Pajo | SA Catana vs. Piscines Desjoyaux SA | SA Catana vs. Impulse Fitness Solutions |
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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