Correlation Between SA Catana and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both SA Catana and Thermador Groupe 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 Thermador Groupe 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 Thermador Groupe SA, you can compare the effects of market volatilities on SA Catana and Thermador Groupe 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 Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Thermador Groupe.
Diversification Opportunities for SA Catana and Thermador Groupe
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CATG and Thermador is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe 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 Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of SA Catana i.e., SA Catana and Thermador Groupe go up and down completely randomly.
Pair Corralation between SA Catana and Thermador Groupe
Assuming the 90 days trading horizon SA Catana Group is expected to generate 1.43 times more return on investment than Thermador Groupe. However, SA Catana is 1.43 times more volatile than Thermador Groupe SA. It trades about -0.05 of its potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.12 per unit of risk. If you would invest 558.00 in SA Catana Group on September 1, 2024 and sell it today you would lose (96.00) from holding SA Catana Group or give up 17.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SA Catana Group vs. Thermador Groupe SA
Performance |
| Timeline |
| SA Catana Group |
| Thermador Groupe |
SA Catana and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Thermador Groupe
The main advantage of trading using opposite SA Catana and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Thermador Groupe 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| SA Catana vs. Trigano SA | SA Catana vs. Bonduelle SCA | SA Catana vs. Imerys SA | SA Catana vs. Manitou BF SA |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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