Correlation Between SA Catana and Impulse Fitness

Can any of the company-specific risk be diversified away by investing in both SA Catana and Impulse Fitness 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 SA Catana and Impulse Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SA Catana Group and Impulse Fitness Solutions, you can compare the effects of market volatilities on SA Catana and Impulse Fitness 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 SA Catana with a short position of Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of SA Catana and Impulse Fitness.

Diversification Opportunities for SA Catana and Impulse Fitness

0.0

Correlation Coefficient

SA Catana  Impulse Fitness

Pay attention - limited upside

The 3 months correlation between CATG and Impulse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SA Catana Group and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions and SA Catana 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 SA Catana Group are associated (or correlated) with Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of SA Catana i.e., SA Catana and Impulse Fitness go up and down completely randomly.

Pair Corralation between SA Catana and Impulse Fitness

If you would invest  444.00  in SA Catana Group on December 2, 2024 and sell it today you would earn a total of  61.00  from holding SA Catana Group or generate 13.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SA Catana Group  vs.  Impulse Fitness Solutions

SA Catana Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SA Catana Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SA Catana sustained solid returns over the last few months and may actually be approaching a breakup point.

Impulse Fitness Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impulse Fitness Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Impulse Fitness is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with SA Catana and Impulse Fitness

The main advantage of trading using opposite SA Catana and Impulse Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SA Catana position performs unexpectedly, Impulse Fitness 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 Impulse Fitness will offset losses from the drop in Impulse Fitness' long position.

The idea behind SA Catana Group and Impulse Fitness Solutions 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.