Correlation Between SA Catana and Cegedim SA
Can any of the company-specific risk be diversified away by investing in both SA Catana and Cegedim 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 Cegedim 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 Cegedim SA, you can compare the effects of market volatilities on SA Catana and Cegedim 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 Cegedim SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Cegedim SA.
Diversification Opportunities for SA Catana and Cegedim SA
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CATG and Cegedim is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Cegedim SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cegedim 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 Cegedim SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cegedim SA has no effect on the direction of SA Catana i.e., SA Catana and Cegedim SA go up and down completely randomly.
Pair Corralation between SA Catana and Cegedim SA
Assuming the 90 days trading horizon SA Catana Group is expected to generate 1.17 times more return on investment than Cegedim SA. However, SA Catana is 1.17 times more volatile than Cegedim SA. It trades about 0.0 of its potential returns per unit of risk. Cegedim SA is currently generating about -0.02 per unit of risk. If you would invest 557.00 in SA Catana Group on August 26, 2024 and sell it today you would lose (89.00) from holding SA Catana Group or give up 15.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Cegedim SA
Performance |
| Timeline |
| SA Catana Group |
| Cegedim SA |
SA Catana and Cegedim SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Cegedim SA
The main advantage of trading using opposite SA Catana and Cegedim SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Cegedim 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 Cegedim SA will offset losses from the drop in Cegedim SA's long position.| SA Catana vs. Novatech Industries SA | SA Catana vs. CMG Cleantech SA | SA Catana vs. Jacquet Metal Service | SA Catana vs. Axway Software |
| Cegedim SA vs. Bonduelle SCA | Cegedim SA vs. Boiron SA | Cegedim SA vs. Assystem SA | Cegedim SA vs. Lectra 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 Positions Ratings module to 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.
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