Correlation Between CATLIN GROUP and Cordiant Digital
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP and Cordiant Digital 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 Cordiant Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and Cordiant Digital Infrastructure, you can compare the effects of market volatilities on CATLIN GROUP and Cordiant Digital 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 Cordiant Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and Cordiant Digital.
Diversification Opportunities for CATLIN GROUP and Cordiant Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CATLIN and Cordiant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP and Cordiant Digital Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordiant Digital Inf 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 Cordiant Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordiant Digital Inf has no effect on the direction of CATLIN GROUP i.e., CATLIN GROUP and Cordiant Digital go up and down completely randomly.
Pair Corralation between CATLIN GROUP and Cordiant Digital
If you would invest 85.00 in Cordiant Digital Infrastructure on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Cordiant Digital Infrastructure or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CATLIN GROUP vs. Cordiant Digital Infrastructur
Performance |
| Timeline |
| CATLIN GROUP |
| Cordiant Digital Inf |
CATLIN GROUP and Cordiant Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and Cordiant Digital
The main advantage of trading using opposite CATLIN GROUP and Cordiant Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP position performs unexpectedly, Cordiant Digital 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 Cordiant Digital will offset losses from the drop in Cordiant Digital's long position.| CATLIN GROUP vs. Molson Coors Beverage | CATLIN GROUP vs. Flowtech Fluidpower plc | CATLIN GROUP vs. CleanTech Lithium plc | CATLIN GROUP vs. Monster Beverage Corp |
| Cordiant Digital vs. Catalyst Media Group | Cordiant Digital vs. CATLIN GROUP | Cordiant Digital vs. Magnora ASA | Cordiant Digital vs. RTW Venture Fund |
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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