Correlation Between SA Catana and Worldline
Can any of the company-specific risk be diversified away by investing in both SA Catana and Worldline 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 Worldline 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 Worldline SA, you can compare the effects of market volatilities on SA Catana and Worldline 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 Worldline. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Worldline.
Diversification Opportunities for SA Catana and Worldline
Very weak diversification
The 3 months correlation between CATG and Worldline is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Worldline SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldline 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 Worldline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldline SA has no effect on the direction of SA Catana i.e., SA Catana and Worldline go up and down completely randomly.
Pair Corralation between SA Catana and Worldline
Assuming the 90 days trading horizon SA Catana Group is expected to under-perform the Worldline. But the stock apears to be less risky and, when comparing its historical volatility, SA Catana Group is 1.03 times less risky than Worldline. The stock trades about -0.08 of its potential returns per unit of risk. The Worldline SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 808.00 in Worldline SA on October 22, 2024 and sell it today you would lose (17.00) from holding Worldline SA or give up 2.1% 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. Worldline SA
Performance |
| Timeline |
| SA Catana Group |
| Worldline SA |
SA Catana and Worldline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SA Catana and Worldline
The main advantage of trading using opposite SA Catana and Worldline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Worldline 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 Worldline will offset losses from the drop in Worldline's long position.| SA Catana vs. BEBO Health SA | SA Catana vs. X Fab Silicon | SA Catana vs. STMicroelectronics NV | SA Catana vs. Bilendi |
| Worldline vs. Atos SE | Worldline vs. Teleperformance SE | Worldline vs. Dassault Systemes SE | Worldline vs. Capgemini SE |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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