Correlation Between SA Catana and Bains Mer
Can any of the company-specific risk be diversified away by investing in both SA Catana and Bains Mer 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 Bains Mer 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 Bains Mer Monaco, you can compare the effects of market volatilities on SA Catana and Bains Mer 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 Bains Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Bains Mer.
Diversification Opportunities for SA Catana and Bains Mer
Good diversification
The 3 months correlation between CATG and Bains is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Bains Mer Monaco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bains Mer Monaco 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 Bains Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bains Mer Monaco has no effect on the direction of SA Catana i.e., SA Catana and Bains Mer go up and down completely randomly.
Pair Corralation between SA Catana and Bains Mer
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Bains Mer. In addition to that, SA Catana is 1.89 times more volatile than Bains Mer Monaco. It trades about -0.05 of its total potential returns per unit of risk. Bains Mer Monaco is currently generating about -0.09 per unit of volatility. If you would invest 10,350 in Bains Mer Monaco on September 21, 2024 and sell it today you would lose (350.00) from holding Bains Mer Monaco or give up 3.38% 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. Bains Mer Monaco
Performance |
| Timeline |
| SA Catana Group |
| Bains Mer Monaco |
SA Catana and Bains Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Bains Mer
The main advantage of trading using opposite SA Catana and Bains Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Bains Mer 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 Bains Mer will offset losses from the drop in Bains Mer's long position.| SA Catana vs. CMG Cleantech SA | SA Catana vs. Pullup Entertainment Socit | SA Catana vs. Lexibook Linguistic Electronic | SA Catana vs. Innelec Multimedia |
| Bains Mer vs. Compagnie des Alpes | Bains Mer vs. Groupe Partouche SA | Bains Mer vs. Bnteau SA | Bains Mer vs. Boiron 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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