Correlation Between SA Catana and Roche Bobois
Can any of the company-specific risk be diversified away by investing in both SA Catana and Roche Bobois 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 Roche Bobois 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 Roche Bobois, you can compare the effects of market volatilities on SA Catana and Roche Bobois 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 Roche Bobois. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Roche Bobois.
Diversification Opportunities for SA Catana and Roche Bobois
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CATG and Roche is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Roche Bobois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roche Bobois 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 Roche Bobois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roche Bobois has no effect on the direction of SA Catana i.e., SA Catana and Roche Bobois go up and down completely randomly.
Pair Corralation between SA Catana and Roche Bobois
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Roche Bobois. In addition to that, SA Catana is 1.14 times more volatile than Roche Bobois. It trades about -0.01 of its total potential returns per unit of risk. Roche Bobois is currently generating about 0.03 per unit of volatility. If you would invest 3,270 in Roche Bobois on August 31, 2024 and sell it today you would earn a total of 510.00 from holding Roche Bobois or generate 15.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
SA Catana Group vs. Roche Bobois
Performance |
| Timeline |
| SA Catana Group |
| Roche Bobois |
SA Catana and Roche Bobois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Roche Bobois
The main advantage of trading using opposite SA Catana and Roche Bobois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Roche Bobois 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 Roche Bobois will offset losses from the drop in Roche Bobois' long position.| SA Catana vs. Trigano SA | SA Catana vs. Bonduelle SCA | SA Catana vs. Imerys SA | SA Catana vs. Manitou BF SA |
| Roche Bobois vs. SA Catana Group | Roche Bobois vs. Verallia | Roche Bobois vs. Thermador Groupe SA | Roche Bobois 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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