Correlation Between SA Catana and Streamwide
Can any of the company-specific risk be diversified away by investing in both SA Catana and Streamwide 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 Streamwide 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 Streamwide, you can compare the effects of market volatilities on SA Catana and Streamwide 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 Streamwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Streamwide.
Diversification Opportunities for SA Catana and Streamwide
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CATG and Streamwide is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Streamwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamwide 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 Streamwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamwide has no effect on the direction of SA Catana i.e., SA Catana and Streamwide go up and down completely randomly.
Pair Corralation between SA Catana and Streamwide
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Streamwide. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.01 times less risky than Streamwide. The stock trades about -0.02 of its potential returns per unit of risk. The Streamwide is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Streamwide on August 30, 2024 and sell it today you would earn a total of 1,310 from holding Streamwide or generate 72.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Streamwide
Performance |
| Timeline |
| SA Catana Group |
| Streamwide |
SA Catana and Streamwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Streamwide
The main advantage of trading using opposite SA Catana and Streamwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Streamwide 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 Streamwide will offset losses from the drop in Streamwide'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 |
| Streamwide vs. Aubay Socit Anonyme | Streamwide vs. Infotel SA | Streamwide vs. IT Link | Streamwide 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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