Correlation Between Catenon SA and Millenium Hotels
Can any of the company-specific risk be diversified away by investing in both Catenon SA and Millenium Hotels 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 Catenon SA and Millenium Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catenon SA and Millenium Hotels Real, you can compare the effects of market volatilities on Catenon SA and Millenium Hotels 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 Catenon SA with a short position of Millenium Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catenon SA and Millenium Hotels.
Diversification Opportunities for Catenon SA and Millenium Hotels
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Catenon and Millenium is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Catenon SA and Millenium Hotels Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millenium Hotels Real and Catenon SA 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 Catenon SA are associated (or correlated) with Millenium Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millenium Hotels Real has no effect on the direction of Catenon SA i.e., Catenon SA and Millenium Hotels go up and down completely randomly.
Pair Corralation between Catenon SA and Millenium Hotels
Assuming the 90 days trading horizon Catenon SA is expected to under-perform the Millenium Hotels. In addition to that, Catenon SA is 2.0 times more volatile than Millenium Hotels Real. It trades about -0.16 of its total potential returns per unit of risk. Millenium Hotels Real is currently generating about -0.18 per unit of volatility. If you would invest 270.00 in Millenium Hotels Real on October 23, 2024 and sell it today you would lose (10.00) from holding Millenium Hotels Real or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Catenon SA vs. Millenium Hotels Real
Performance |
| Timeline |
| Catenon SA |
| Millenium Hotels Real |
Catenon SA and Millenium Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catenon SA and Millenium Hotels
The main advantage of trading using opposite Catenon SA and Millenium Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catenon SA position performs unexpectedly, Millenium Hotels 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 Millenium Hotels will offset losses from the drop in Millenium Hotels' long position.| Catenon SA vs. Millenium Hotels Real | Catenon SA vs. Naturhouse Health SA | Catenon SA vs. Atrys Health SL | Catenon SA vs. Techo Hogar SOCIMI, |
| Millenium Hotels vs. Airbus Group SE | Millenium Hotels vs. Industria de Diseno | Millenium Hotels vs. Vale SA | Millenium Hotels vs. Iberdrola SA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |