Correlation Between Sabien Technology and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and CATLIN GROUP 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 Sabien Technology and CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and CATLIN GROUP , you can compare the effects of market volatilities on Sabien Technology and CATLIN GROUP 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 Sabien Technology with a short position of CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and CATLIN GROUP.
Diversification Opportunities for Sabien Technology and CATLIN GROUP
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabien and CATLIN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Sabien Technology i.e., Sabien Technology and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Sabien Technology and CATLIN GROUP
Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the CATLIN GROUP. In addition to that, Sabien Technology is 3.97 times more volatile than CATLIN GROUP . It trades about -0.04 of its total potential returns per unit of risk. CATLIN GROUP is currently generating about -0.07 per unit of volatility. If you would invest 9,650 in CATLIN GROUP on September 13, 2024 and sell it today you would lose (250.00) from holding CATLIN GROUP or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. CATLIN GROUP
Performance |
| Timeline |
| Sabien Technology |
| CATLIN GROUP |
Sabien Technology and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and CATLIN GROUP
The main advantage of trading using opposite Sabien Technology and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Sabien Technology vs. International Biotechnology Trust | Sabien Technology vs. Abingdon Health Plc | Sabien Technology vs. Optima Health plc | Sabien Technology vs. Inspiration Healthcare Group |
| CATLIN GROUP vs. Pfeiffer Vacuum Technology | CATLIN GROUP vs. Hilton Food Group | CATLIN GROUP vs. Sabien Technology Group | CATLIN GROUP vs. Spotify Technology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |