Correlation Between SQUIRREL MEDIA and Caltagirone SpA

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Can any of the company-specific risk be diversified away by investing in both SQUIRREL MEDIA and Caltagirone SpA 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 SQUIRREL MEDIA and Caltagirone SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SQUIRREL MEDIA SA and Caltagirone SpA, you can compare the effects of market volatilities on SQUIRREL MEDIA and Caltagirone SpA 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 SQUIRREL MEDIA with a short position of Caltagirone SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SQUIRREL MEDIA and Caltagirone SpA.

Diversification Opportunities for SQUIRREL MEDIA and Caltagirone SpA

SQUIRRELCaltagironeDiversified AwaySQUIRRELCaltagironeDiversified Away100%
0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between SQUIRREL and Caltagirone is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SQUIRREL MEDIA SA and Caltagirone SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caltagirone SpA and SQUIRREL MEDIA 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 SQUIRREL MEDIA SA are associated (or correlated) with Caltagirone SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caltagirone SpA has no effect on the direction of SQUIRREL MEDIA i.e., SQUIRREL MEDIA and Caltagirone SpA go up and down completely randomly.

Pair Corralation between SQUIRREL MEDIA and Caltagirone SpA

Assuming the 90 days horizon SQUIRREL MEDIA is expected to generate 2.93 times less return on investment than Caltagirone SpA. But when comparing it to its historical volatility, SQUIRREL MEDIA SA is 1.32 times less risky than Caltagirone SpA. It trades about 0.04 of its potential returns per unit of risk. Caltagirone SpA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  576.00  in Caltagirone SpA on October 30, 2024 and sell it today you would earn a total of  78.00  from holding Caltagirone SpA or generate 13.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.33%
ValuesDaily Returns

SQUIRREL MEDIA SA  vs.  Caltagirone SpA

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -15-10-505101520
JavaScript chart by amCharts 3.21.150MD QCG
       Timeline  
SQUIRREL MEDIA SA 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in SQUIRREL MEDIA SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SQUIRREL MEDIA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.151.21.251.31.351.4
Caltagirone SpA 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Caltagirone SpA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Caltagirone SpA unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5.65.866.26.46.66.8

SQUIRREL MEDIA and Caltagirone SpA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.14-4.6-3.06-1.510.02571.543.084.626.16 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.150MD QCG
       Returns  

Pair Trading with SQUIRREL MEDIA and Caltagirone SpA

The main advantage of trading using opposite SQUIRREL MEDIA and Caltagirone SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SQUIRREL MEDIA position performs unexpectedly, Caltagirone SpA 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 Caltagirone SpA will offset losses from the drop in Caltagirone SpA's long position.
The idea behind SQUIRREL MEDIA SA and Caltagirone SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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