Correlation Between CATLIN GROUP and CT Global
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP and CT Global 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 CATLIN GROUP and CT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and CT Global Managed, you can compare the effects of market volatilities on CATLIN GROUP and CT Global 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 CATLIN GROUP with a short position of CT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and CT Global.
Diversification Opportunities for CATLIN GROUP and CT Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CATLIN and CMPG is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP and CT Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Global Managed and CATLIN GROUP 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 CATLIN GROUP are associated (or correlated) with CT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Global Managed has no effect on the direction of CATLIN GROUP i.e., CATLIN GROUP and CT Global go up and down completely randomly.
Pair Corralation between CATLIN GROUP and CT Global
Assuming the 90 days trading horizon CATLIN GROUP is expected to under-perform the CT Global. In addition to that, CATLIN GROUP is 1.86 times more volatile than CT Global Managed. It trades about -0.29 of its total potential returns per unit of risk. CT Global Managed is currently generating about 0.24 per unit of volatility. If you would invest 26,500 in CT Global Managed on October 22, 2024 and sell it today you would earn a total of 300.00 from holding CT Global Managed or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
CATLIN GROUP vs. CT Global Managed
Performance |
| Timeline |
| CATLIN GROUP |
| CT Global Managed |
CATLIN GROUP and CT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and CT Global
The main advantage of trading using opposite CATLIN GROUP and CT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP position performs unexpectedly, CT Global 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 CT Global will offset losses from the drop in CT Global's long position.| CATLIN GROUP vs. JB Hunt Transport | CATLIN GROUP vs. Sydbank | CATLIN GROUP vs. Norman Broadbent Plc | CATLIN GROUP vs. Erste Group Bank |
| CT Global vs. Liontrust Asset Management | CT Global vs. Impax Asset Management | CT Global vs. Universal Display Corp | CT Global vs. Litigation Capital Management |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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