Correlation Between Smcp SAS and SA Catana
Can any of the company-specific risk be diversified away by investing in both Smcp SAS 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 Smcp SAS and SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smcp SAS and SA Catana Group, you can compare the effects of market volatilities on Smcp SAS 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 Smcp SAS with a short position of SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smcp SAS and SA Catana.
Diversification Opportunities for Smcp SAS and SA Catana
Very good diversification
The 3 months correlation between Smcp and CATG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Smcp SAS 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 Smcp SAS 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 Smcp SAS 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 Smcp SAS i.e., Smcp SAS and SA Catana go up and down completely randomly.
Pair Corralation between Smcp SAS and SA Catana
Assuming the 90 days trading horizon Smcp SAS is expected to under-perform the SA Catana. In addition to that, Smcp SAS is 1.6 times more volatile than SA Catana Group. It trades about -0.02 of its total potential returns per unit of risk. SA Catana Group is currently generating about -0.01 per unit of volatility. If you would invest 581.00 in SA Catana Group on September 5, 2024 and sell it today you would lose (96.00) from holding SA Catana Group or give up 16.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smcp SAS vs. SA Catana Group
Performance |
| Timeline |
| Smcp SAS |
| SA Catana Group |
Smcp SAS and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smcp SAS and SA Catana
The main advantage of trading using opposite Smcp SAS and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smcp SAS 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.| Smcp SAS vs. Maisons du Monde | Smcp SAS vs. Fnac Darty SA | Smcp SAS vs. Mersen SA | Smcp SAS vs. Interparfums SA |
| SA Catana vs. Onlineformapro SA | SA Catana vs. Marie Brizard Wine | SA Catana vs. Affluent Medical SAS | SA Catana vs. Fiducial Office Solutions |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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