Correlation Between Groupe Sfpi and SA Catana
Can any of the company-specific risk be diversified away by investing in both Groupe Sfpi 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 Groupe Sfpi and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Sfpi and SA Catana Group, you can compare the effects of market volatilities on Groupe Sfpi 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 Groupe Sfpi with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Sfpi and SA Catana.
Diversification Opportunities for Groupe Sfpi and SA Catana
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Groupe and CATG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Sfpi 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 Groupe Sfpi 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 Groupe Sfpi 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 Groupe Sfpi i.e., Groupe Sfpi and SA Catana go up and down completely randomly.
Pair Corralation between Groupe Sfpi and SA Catana
Assuming the 90 days trading horizon Groupe Sfpi is expected to generate 1.06 times more return on investment than SA Catana. However, Groupe Sfpi is 1.06 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 179.00 in Groupe Sfpi on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Groupe Sfpi or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Sfpi vs. SA Catana Group
Performance |
| Timeline |
| Groupe Sfpi |
| SA Catana Group |
Groupe Sfpi and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Sfpi and SA Catana
The main advantage of trading using opposite Groupe Sfpi and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Sfpi 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.| Groupe Sfpi vs. Aubay Socit Anonyme | Groupe Sfpi vs. Infotel SA | Groupe Sfpi vs. IT Link | Groupe Sfpi vs. Manitou BF SA |
| SA Catana vs. Affluent Medical SAS | SA Catana vs. Gaztransport Technigaz SAS | SA Catana vs. Onlineformapro 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |