Correlation Between SA Catana and Fnac Darty
Can any of the company-specific risk be diversified away by investing in both SA Catana and Fnac Darty 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 Fnac Darty 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 Fnac Darty SA, you can compare the effects of market volatilities on SA Catana and Fnac Darty 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 Fnac Darty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Fnac Darty.
Diversification Opportunities for SA Catana and Fnac Darty
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CATG and Fnac is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Fnac Darty SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fnac Darty 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 Fnac Darty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fnac Darty SA has no effect on the direction of SA Catana i.e., SA Catana and Fnac Darty go up and down completely randomly.
Pair Corralation between SA Catana and Fnac Darty
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Fnac Darty. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.02 times less risky than Fnac Darty. The stock trades about -0.01 of its potential returns per unit of risk. The Fnac Darty SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,218 in Fnac Darty SA on September 3, 2024 and sell it today you would lose (563.00) from holding Fnac Darty SA or give up 17.5% 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. Fnac Darty SA
Performance |
| Timeline |
| SA Catana Group |
| Fnac Darty SA |
SA Catana and Fnac Darty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Fnac Darty
The main advantage of trading using opposite SA Catana and Fnac Darty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Fnac Darty 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 Fnac Darty will offset losses from the drop in Fnac Darty's long position.| SA Catana vs. Trigano SA | SA Catana vs. Fountaine Pajo | SA Catana vs. Piscines Desjoyaux SA | SA Catana vs. Impulse Fitness Solutions |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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