Correlation Between Grupo Catalana and Miquel Y
Can any of the company-specific risk be diversified away by investing in both Grupo Catalana and Miquel Y 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 Grupo Catalana and Miquel Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Catalana Occidente and Miquel y Costas, you can compare the effects of market volatilities on Grupo Catalana and Miquel Y 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 Grupo Catalana with a short position of Miquel Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Catalana and Miquel Y.
Diversification Opportunities for Grupo Catalana and Miquel Y
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Miquel is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Catalana Occidente and Miquel y Costas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miquel y Costas and Grupo Catalana 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 Grupo Catalana Occidente are associated (or correlated) with Miquel Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miquel y Costas has no effect on the direction of Grupo Catalana i.e., Grupo Catalana and Miquel Y go up and down completely randomly.
Pair Corralation between Grupo Catalana and Miquel Y
Assuming the 90 days trading horizon Grupo Catalana Occidente is expected to generate 0.7 times more return on investment than Miquel Y. However, Grupo Catalana Occidente is 1.43 times less risky than Miquel Y. It trades about 0.08 of its potential returns per unit of risk. Miquel y Costas is currently generating about 0.03 per unit of risk. If you would invest 2,735 in Grupo Catalana Occidente on November 2, 2024 and sell it today you would earn a total of 1,115 from holding Grupo Catalana Occidente or generate 40.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Catalana Occidente vs. Miquel y Costas
Performance |
| Timeline |
| Grupo Catalana Occidente |
| Miquel y Costas |
Grupo Catalana and Miquel Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Catalana and Miquel Y
The main advantage of trading using opposite Grupo Catalana and Miquel Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Catalana position performs unexpectedly, Miquel Y 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 Miquel Y will offset losses from the drop in Miquel Y's long position.| Grupo Catalana vs. Miquel y Costas | Grupo Catalana vs. Vidrala SA | Grupo Catalana vs. Viscofan | Grupo Catalana vs. Cia de Distribucion |
| Miquel Y vs. Vidrala SA | Miquel Y vs. Grupo Catalana Occidente | Miquel Y vs. Iberpapel Gestion SA | Miquel Y vs. Cia de Distribucion |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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