Correlation Between SA Catana and TronicS Microsystems
Can any of the company-specific risk be diversified away by investing in both SA Catana and TronicS Microsystems 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 TronicS Microsystems 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 TronicS Microsystems SA, you can compare the effects of market volatilities on SA Catana and TronicS Microsystems 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 TronicS Microsystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and TronicS Microsystems.
Diversification Opportunities for SA Catana and TronicS Microsystems
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CATG and TronicS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and TronicS Microsystems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TronicS Microsystems 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 TronicS Microsystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TronicS Microsystems has no effect on the direction of SA Catana i.e., SA Catana and TronicS Microsystems go up and down completely randomly.
Pair Corralation between SA Catana and TronicS Microsystems
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the TronicS Microsystems. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 2.88 times less risky than TronicS Microsystems. The stock trades about -0.02 of its potential returns per unit of risk. The TronicS Microsystems SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 320.00 in TronicS Microsystems SA on September 14, 2024 and sell it today you would earn a total of 26.00 from holding TronicS Microsystems SA or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
SA Catana Group vs. TronicS Microsystems SA
Performance |
| Timeline |
| SA Catana Group |
| TronicS Microsystems |
SA Catana and TronicS Microsystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and TronicS Microsystems
The main advantage of trading using opposite SA Catana and TronicS Microsystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, TronicS Microsystems 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 TronicS Microsystems will offset losses from the drop in TronicS Microsystems' long position.| SA Catana vs. Trigano SA | SA Catana vs. Bnteau SA | SA Catana vs. Fountaine Pajo | SA Catana vs. Piscines Desjoyaux SA |
| TronicS Microsystems vs. Groupe Guillin SA | TronicS Microsystems vs. Stef SA | TronicS Microsystems vs. SA Catana Group | TronicS Microsystems vs. Jacquet Metal Service |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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