Correlation Between CMG Cleantech and SA Catana
Can any of the company-specific risk be diversified away by investing in both CMG Cleantech 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 CMG Cleantech and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMG Cleantech SA and SA Catana Group, you can compare the effects of market volatilities on CMG Cleantech 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 CMG Cleantech with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Cleantech and SA Catana.
Diversification Opportunities for CMG Cleantech and SA Catana
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CMG and CATG is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding CMG Cleantech 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 CMG Cleantech 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 CMG Cleantech 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 CMG Cleantech i.e., CMG Cleantech and SA Catana go up and down completely randomly.
Pair Corralation between CMG Cleantech and SA Catana
Assuming the 90 days trading horizon CMG Cleantech SA is expected to generate 2.45 times more return on investment than SA Catana. However, CMG Cleantech is 2.45 times more volatile than SA Catana Group. It trades about 0.02 of its potential returns per unit of risk. SA Catana Group is currently generating about -0.05 per unit of risk. If you would invest 130.00 in CMG Cleantech SA on August 27, 2024 and sell it today you would lose (10.00) from holding CMG Cleantech SA or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Cleantech SA vs. SA Catana Group
Performance |
| Timeline |
| CMG Cleantech SA |
| SA Catana Group |
CMG Cleantech and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Cleantech and SA Catana
The main advantage of trading using opposite CMG Cleantech and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Cleantech 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.| CMG Cleantech vs. EPC Groupe | CMG Cleantech vs. Groupe Sfpi | CMG Cleantech vs. Baikowski SASU | CMG Cleantech vs. NSE SA |
| SA Catana vs. ZCCM Investments Holdings | SA Catana vs. Sogeclair SA | SA Catana vs. CMG Cleantech SA | SA Catana vs. Broadpeak 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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