Correlation Between CATLIN GROUP and Orient Telecoms
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP and Orient Telecoms 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 Orient Telecoms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and Orient Telecoms, you can compare the effects of market volatilities on CATLIN GROUP and Orient Telecoms 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 Orient Telecoms. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and Orient Telecoms.
Diversification Opportunities for CATLIN GROUP and Orient Telecoms
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CATLIN and Orient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP and Orient Telecoms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Telecoms 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 Orient Telecoms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Telecoms has no effect on the direction of CATLIN GROUP i.e., CATLIN GROUP and Orient Telecoms go up and down completely randomly.
Pair Corralation between CATLIN GROUP and Orient Telecoms
If you would invest 800.00 in Orient Telecoms on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Orient Telecoms 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. Orient Telecoms
Performance |
| Timeline |
| CATLIN GROUP |
| Orient Telecoms |
CATLIN GROUP and Orient Telecoms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and Orient Telecoms
The main advantage of trading using opposite CATLIN GROUP and Orient Telecoms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP position performs unexpectedly, Orient Telecoms 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 Orient Telecoms will offset losses from the drop in Orient Telecoms' long position.| CATLIN GROUP vs. Pfeiffer Vacuum Technology | CATLIN GROUP vs. Hilton Food Group | CATLIN GROUP vs. Sabien Technology Group | CATLIN GROUP vs. Spotify Technology SA |
| Orient Telecoms vs. Samsung Electronics Co | Orient Telecoms vs. Samsung Electronics Co | Orient Telecoms vs. Hyundai Motor | Orient Telecoms vs. Toyota Motor Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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