Correlation Between SA Catana and Claranova
Can any of the company-specific risk be diversified away by investing in both SA Catana and Claranova 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 Claranova 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 Claranova SE, you can compare the effects of market volatilities on SA Catana and Claranova 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 Claranova. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Claranova.
Diversification Opportunities for SA Catana and Claranova
Very good diversification
The 3 months correlation between CATG and Claranova is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Claranova SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Claranova SE 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 Claranova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Claranova SE has no effect on the direction of SA Catana i.e., SA Catana and Claranova go up and down completely randomly.
Pair Corralation between SA Catana and Claranova
Assuming the 90 days trading horizon SA Catana is expected to generate 1.99 times less return on investment than Claranova. In addition to that, SA Catana is 1.1 times more volatile than Claranova SE. It trades about 0.1 of its total potential returns per unit of risk. Claranova SE is currently generating about 0.22 per unit of volatility. If you would invest 124.00 in Claranova SE on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Claranova SE or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Claranova SE
Performance |
| Timeline |
| SA Catana Group |
| Claranova SE |
SA Catana and Claranova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Claranova
The main advantage of trading using opposite SA Catana and Claranova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Claranova 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 Claranova will offset losses from the drop in Claranova's long position.| SA Catana vs. Les Hotels Bav | SA Catana vs. Seche Environnem | SA Catana vs. Metalliance SA | SA Catana vs. Fiducial Office Solutions |
| Claranova vs. Solutions 30 SE | Claranova vs. BigBen Interactive | Claranova vs. SA Catana Group | Claranova vs. Solocal Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |