Correlation Between Financiere Marjos and SA Catana
Can any of the company-specific risk be diversified away by investing in both Financiere Marjos and SA Catana 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 Financiere Marjos and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Financiere Marjos SA and SA Catana Group, you can compare the effects of market volatilities on Financiere Marjos and SA Catana 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 Financiere Marjos with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financiere Marjos and SA Catana.
Diversification Opportunities for Financiere Marjos and SA Catana
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Financiere and CATG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Financiere Marjos SA and SA Catana Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SA Catana Group and Financiere Marjos 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 Financiere Marjos SA are associated (or correlated) with SA Catana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SA Catana Group has no effect on the direction of Financiere Marjos i.e., Financiere Marjos and SA Catana go up and down completely randomly.
Pair Corralation between Financiere Marjos and SA Catana
Assuming the 90 days trading horizon Financiere Marjos SA is expected to under-perform the SA Catana. In addition to that, Financiere Marjos is 3.08 times more volatile than SA Catana Group. It trades about -0.18 of its total potential returns per unit of risk. SA Catana Group is currently generating about -0.04 per unit of volatility. If you would invest 479.00 in SA Catana Group on October 21, 2024 and sell it today you would lose (15.00) from holding SA Catana Group or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financiere Marjos SA vs. SA Catana Group
Performance |
| Timeline |
| Financiere Marjos |
| SA Catana Group |
Financiere Marjos and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financiere Marjos and SA Catana
The main advantage of trading using opposite Financiere Marjos and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financiere Marjos position performs unexpectedly, SA Catana 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 SA Catana will offset losses from the drop in SA Catana's long position.| Financiere Marjos vs. Fiducial Office Solutions | Financiere Marjos vs. Foncire Euris SA | Financiere Marjos vs. Bernard Loisea | Financiere Marjos vs. Coheris SA |
| SA Catana vs. Linedata Services SA | SA Catana vs. Jacquet Metal Service | SA Catana vs. Gaztransport Technigaz SAS | SA Catana vs. Reworld Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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