Correlation Between SA Catana and Onlineformapro
Can any of the company-specific risk be diversified away by investing in both SA Catana and Onlineformapro 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 Onlineformapro 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 Onlineformapro SA, you can compare the effects of market volatilities on SA Catana and Onlineformapro 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 Onlineformapro. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Onlineformapro.
Diversification Opportunities for SA Catana and Onlineformapro
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CATG and Onlineformapro is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Onlineformapro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onlineformapro 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 Onlineformapro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onlineformapro SA has no effect on the direction of SA Catana i.e., SA Catana and Onlineformapro go up and down completely randomly.
Pair Corralation between SA Catana and Onlineformapro
Assuming the 90 days trading horizon SA Catana Group is expected to generate 0.27 times more return on investment than Onlineformapro. However, SA Catana Group is 3.74 times less risky than Onlineformapro. It trades about -0.07 of its potential returns per unit of risk. Onlineformapro SA is currently generating about -0.21 per unit of risk. If you would invest 520.00 in SA Catana Group on November 28, 2024 and sell it today you would lose (12.00) from holding SA Catana Group or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Onlineformapro SA
Performance |
| Timeline |
| SA Catana Group |
| Onlineformapro SA |
SA Catana and Onlineformapro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Onlineformapro
The main advantage of trading using opposite SA Catana and Onlineformapro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Onlineformapro 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 Onlineformapro will offset losses from the drop in Onlineformapro's long position.| SA Catana vs. Gaztransport Technigaz SAS | SA Catana vs. Pullup Entertainment Socit | SA Catana vs. Ubisoft Entertainment | SA Catana vs. Aures Technologies SA |
| Onlineformapro vs. Txcom SA | Onlineformapro vs. Poujoulat SA | Onlineformapro vs. Vente Unique | Onlineformapro vs. Moulinvest |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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