Correlation Between Global Dominion and Catenon SA
Can any of the company-specific risk be diversified away by investing in both Global Dominion and Catenon SA 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 Global Dominion and Catenon SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Dominion Access and Catenon SA, you can compare the effects of market volatilities on Global Dominion and Catenon SA 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 Global Dominion with a short position of Catenon SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Dominion and Catenon SA.
Diversification Opportunities for Global Dominion and Catenon SA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Catenon is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Global Dominion Access and Catenon SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catenon SA and Global Dominion 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 Global Dominion Access are associated (or correlated) with Catenon SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catenon SA has no effect on the direction of Global Dominion i.e., Global Dominion and Catenon SA go up and down completely randomly.
Pair Corralation between Global Dominion and Catenon SA
Assuming the 90 days trading horizon Global Dominion Access is expected to under-perform the Catenon SA. But the stock apears to be less risky and, when comparing its historical volatility, Global Dominion Access is 2.65 times less risky than Catenon SA. The stock trades about -0.03 of its potential returns per unit of risk. The Catenon SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Catenon SA on November 3, 2024 and sell it today you would lose (13.00) from holding Catenon SA or give up 16.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Dominion Access vs. Catenon SA
Performance |
| Timeline |
| Global Dominion Access |
| Catenon SA |
Global Dominion and Catenon SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Dominion and Catenon SA
The main advantage of trading using opposite Global Dominion and Catenon SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Dominion position performs unexpectedly, Catenon SA 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 Catenon SA will offset losses from the drop in Catenon SA's long position.| Global Dominion vs. CIE Automotive SA | Global Dominion vs. Gestamp Automocion SA | Global Dominion vs. Vidrala SA | Global Dominion vs. Miquel y Costas |
| Catenon SA vs. Home Capital Rentals | Catenon SA vs. Borges Agricultural Industrial | Catenon SA vs. Media Investment Optimization | Catenon SA vs. Azaria Rental SOCIMI |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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