Correlation Between CATLIN GROUP and Secure Property
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP and Secure Property 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 Secure Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and Secure Property Development, you can compare the effects of market volatilities on CATLIN GROUP and Secure Property 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 Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and Secure Property.
Diversification Opportunities for CATLIN GROUP and Secure Property
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CATLIN and Secure is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve 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 Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of CATLIN GROUP i.e., CATLIN GROUP and Secure Property go up and down completely randomly.
Pair Corralation between CATLIN GROUP and Secure Property
If you would invest 400.00 in Secure Property Development on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Secure Property Development or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
CATLIN GROUP vs. Secure Property Development
Performance |
| Timeline |
| CATLIN GROUP |
| Secure Property Deve |
CATLIN GROUP and Secure Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and Secure Property
The main advantage of trading using opposite CATLIN GROUP and Secure Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP position performs unexpectedly, Secure Property 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 Secure Property will offset losses from the drop in Secure Property's long position.| CATLIN GROUP vs. GreenX Metals | CATLIN GROUP vs. Nordic Semiconductor ASA | CATLIN GROUP vs. Eastinco Mining Exploration | CATLIN GROUP vs. Elmos Semiconductor SE |
| Secure Property vs. Schroders Investment Trusts | Secure Property vs. EJF Investments | Secure Property vs. Verizon Communications | Secure Property vs. Spirent Communications plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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