Correlation Between SA Catana and Kaufman Et
Can any of the company-specific risk be diversified away by investing in both SA Catana and Kaufman Et 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 Kaufman Et 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 Kaufman Et Broad, you can compare the effects of market volatilities on SA Catana and Kaufman Et 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 Kaufman Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Kaufman Et.
Diversification Opportunities for SA Catana and Kaufman Et
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CATG and Kaufman is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Kaufman Et Broad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Et Broad 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 Kaufman Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Et Broad has no effect on the direction of SA Catana i.e., SA Catana and Kaufman Et go up and down completely randomly.
Pair Corralation between SA Catana and Kaufman Et
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Kaufman Et. In addition to that, SA Catana is 1.14 times more volatile than Kaufman Et Broad. It trades about 0.0 of its total potential returns per unit of risk. Kaufman Et Broad is currently generating about 0.05 per unit of volatility. If you would invest 2,209 in Kaufman Et Broad on September 12, 2024 and sell it today you would earn a total of 946.00 from holding Kaufman Et Broad or generate 42.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Kaufman Et Broad
Performance |
| Timeline |
| SA Catana Group |
| Kaufman Et Broad |
SA Catana and Kaufman Et Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Kaufman Et
The main advantage of trading using opposite SA Catana and Kaufman Et positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Kaufman Et 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 Kaufman Et will offset losses from the drop in Kaufman Et's long position.| SA Catana vs. Trigano SA | SA Catana vs. Bnteau SA | SA Catana vs. Fountaine Pajo | SA Catana vs. Piscines Desjoyaux SA |
| Kaufman Et vs. SA Catana Group | Kaufman Et vs. Verallia | Kaufman Et vs. Thermador Groupe SA | Kaufman Et vs. Maisons du Monde |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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