Correlation Between SA Catana and Centrale DAchat
Can any of the company-specific risk be diversified away by investing in both SA Catana and Centrale DAchat 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 Centrale DAchat 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 Centrale dAchat Franaise, you can compare the effects of market volatilities on SA Catana and Centrale DAchat 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 Centrale DAchat. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Centrale DAchat.
Diversification Opportunities for SA Catana and Centrale DAchat
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CATG and Centrale is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Centrale dAchat Franaise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrale dAchat Franaise 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 Centrale DAchat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrale dAchat Franaise has no effect on the direction of SA Catana i.e., SA Catana and Centrale DAchat go up and down completely randomly.
Pair Corralation between SA Catana and Centrale DAchat
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Centrale DAchat. In addition to that, SA Catana is 1.33 times more volatile than Centrale dAchat Franaise. It trades about -0.04 of its total potential returns per unit of risk. Centrale dAchat Franaise is currently generating about 0.0 per unit of volatility. If you would invest 868.00 in Centrale dAchat Franaise on August 27, 2024 and sell it today you would lose (50.00) from holding Centrale dAchat Franaise or give up 5.76% 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. Centrale dAchat Franaise
Performance |
| Timeline |
| SA Catana Group |
| Centrale dAchat Franaise |
SA Catana and Centrale DAchat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Centrale DAchat
The main advantage of trading using opposite SA Catana and Centrale DAchat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Centrale DAchat 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 Centrale DAchat will offset losses from the drop in Centrale DAchat's long position.| SA Catana vs. ZCCM Investments Holdings | SA Catana vs. Sogeclair SA | SA Catana vs. CMG Cleantech SA | SA Catana vs. Broadpeak SA |
| Centrale DAchat vs. SA Catana Group | Centrale DAchat vs. Reworld Media | Centrale DAchat vs. Biosynex | Centrale DAchat vs. Moulinvest |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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