Correlation Between Imerys SA and SA Catana
Can any of the company-specific risk be diversified away by investing in both Imerys SA 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 Imerys SA and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imerys SA and SA Catana Group, you can compare the effects of market volatilities on Imerys SA 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 Imerys SA with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imerys SA and SA Catana.
Diversification Opportunities for Imerys SA and SA Catana
Very weak diversification
The 3 months correlation between Imerys and CATG is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Imerys 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 Imerys SA 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 Imerys 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 Imerys SA i.e., Imerys SA and SA Catana go up and down completely randomly.
Pair Corralation between Imerys SA and SA Catana
Assuming the 90 days horizon Imerys SA is expected to under-perform the SA Catana. But the stock apears to be less risky and, when comparing its historical volatility, Imerys SA is 1.09 times less risky than SA Catana. The stock trades about -0.12 of its potential returns per unit of risk. The SA Catana Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 468.00 in SA Catana Group on September 2, 2024 and sell it today you would lose (6.00) from holding SA Catana Group or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imerys SA vs. SA Catana Group
Performance |
| Timeline |
| Imerys SA |
| SA Catana Group |
Imerys SA and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imerys SA and SA Catana
The main advantage of trading using opposite Imerys SA and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imerys SA 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.| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
| SA Catana vs. Sogeclair SA | SA Catana vs. BEBO Health SA | SA Catana vs. Marie Brizard Wine | SA Catana vs. Gaztransport Technigaz SAS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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