Correlation Between Grupo Catalana and Vidrala SA
Can any of the company-specific risk be diversified away by investing in both Grupo Catalana and Vidrala 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 Grupo Catalana and Vidrala SA 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 Vidrala SA, you can compare the effects of market volatilities on Grupo Catalana and Vidrala 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 Grupo Catalana with a short position of Vidrala SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Catalana and Vidrala SA.
Diversification Opportunities for Grupo Catalana and Vidrala SA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Vidrala is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Catalana Occidente and Vidrala SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vidrala SA 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 Vidrala SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vidrala SA has no effect on the direction of Grupo Catalana i.e., Grupo Catalana and Vidrala SA go up and down completely randomly.
Pair Corralation between Grupo Catalana and Vidrala SA
Assuming the 90 days trading horizon Grupo Catalana Occidente is expected to generate 0.6 times more return on investment than Vidrala SA. However, Grupo Catalana Occidente is 1.68 times less risky than Vidrala SA. It trades about 0.08 of its potential returns per unit of risk. Vidrala SA is currently generating about 0.05 per unit of risk. If you would invest 2,797 in Grupo Catalana Occidente on September 2, 2024 and sell it today you would earn a total of 828.00 from holding Grupo Catalana Occidente or generate 29.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Catalana Occidente vs. Vidrala SA
Performance |
| Timeline |
| Grupo Catalana Occidente |
| Vidrala SA |
Grupo Catalana and Vidrala SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Catalana and Vidrala SA
The main advantage of trading using opposite Grupo Catalana and Vidrala SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Catalana position performs unexpectedly, Vidrala 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 Vidrala SA will offset losses from the drop in Vidrala SA's long position.| Grupo Catalana vs. Banco de Sabadell | Grupo Catalana vs. Caixabank SA | Grupo Catalana vs. Acerinox | Grupo Catalana vs. ACS Actividades de |
| Vidrala SA vs. ACS Actividades de | Vidrala SA vs. Mapfre | Vidrala SA vs. Ferrovial | Vidrala SA vs. Indra A |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |