Correlation Between SA Catana and Impulse Fitness
Can any of the company-specific risk be diversified away by investing in both SA Catana and Impulse Fitness 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 Impulse Fitness 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 Impulse Fitness Solutions, you can compare the effects of market volatilities on SA Catana and Impulse Fitness 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 Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Impulse Fitness.
Diversification Opportunities for SA Catana and Impulse Fitness
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CATG and Impulse is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions 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 Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of SA Catana i.e., SA Catana and Impulse Fitness go up and down completely randomly.
Pair Corralation between SA Catana and Impulse Fitness
Assuming the 90 days trading horizon SA Catana Group is expected to generate 1.27 times more return on investment than Impulse Fitness. However, SA Catana is 1.27 times more volatile than Impulse Fitness Solutions. It trades about -0.04 of its potential returns per unit of risk. Impulse Fitness Solutions is currently generating about -0.07 per unit of risk. If you would invest 707.00 in SA Catana Group on August 31, 2024 and sell it today you would lose (245.00) from holding SA Catana Group or give up 34.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
SA Catana Group vs. Impulse Fitness Solutions
Performance |
| Timeline |
| SA Catana Group |
| Impulse Fitness Solutions |
SA Catana and Impulse Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Impulse Fitness
The main advantage of trading using opposite SA Catana and Impulse Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Impulse Fitness 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 Impulse Fitness will offset losses from the drop in Impulse Fitness' long position.| SA Catana vs. Trigano SA | SA Catana vs. Bonduelle SCA | SA Catana vs. Imerys SA | SA Catana vs. Manitou BF SA |
| Impulse Fitness vs. Trigano SA | Impulse Fitness vs. Bonduelle SCA | Impulse Fitness vs. Imerys SA | Impulse Fitness vs. Manitou BF 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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