Correlation Between SA Catana and Burelle SA
Can any of the company-specific risk be diversified away by investing in both SA Catana and Burelle SA 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 Burelle SA 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 Burelle SA, you can compare the effects of market volatilities on SA Catana and Burelle SA 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 Burelle SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Burelle SA.
Diversification Opportunities for SA Catana and Burelle SA
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CATG and Burelle is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Burelle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burelle 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 Burelle SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burelle SA has no effect on the direction of SA Catana i.e., SA Catana and Burelle SA go up and down completely randomly.
Pair Corralation between SA Catana and Burelle SA
Assuming the 90 days trading horizon SA Catana Group is expected to generate 1.28 times more return on investment than Burelle SA. However, SA Catana is 1.28 times more volatile than Burelle SA. It trades about 0.04 of its potential returns per unit of risk. Burelle SA is currently generating about -0.24 per unit of risk. If you would invest 445.00 in SA Catana Group on August 29, 2024 and sell it today you would earn a total of 7.00 from holding SA Catana Group or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Burelle SA
Performance |
| Timeline |
| SA Catana Group |
| Burelle SA |
SA Catana and Burelle SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Burelle SA
The main advantage of trading using opposite SA Catana and Burelle SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Burelle SA 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 Burelle SA will offset losses from the drop in Burelle SA'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 |
| Burelle SA vs. Savencia SA | Burelle SA vs. Compagnie de lOdet | Burelle SA vs. Akwel SA | Burelle SA vs. Wendel |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |