Correlation Between Catena AB and GomSpace Group
Can any of the company-specific risk be diversified away by investing in both Catena AB and GomSpace 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 Catena AB and GomSpace Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catena AB and GomSpace Group AB, you can compare the effects of market volatilities on Catena AB and GomSpace 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 Catena AB with a short position of GomSpace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena AB and GomSpace Group.
Diversification Opportunities for Catena AB and GomSpace Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Catena and GomSpace is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Catena AB and GomSpace Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GomSpace Group AB and Catena AB 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 Catena AB are associated (or correlated) with GomSpace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GomSpace Group AB has no effect on the direction of Catena AB i.e., Catena AB and GomSpace Group go up and down completely randomly.
Pair Corralation between Catena AB and GomSpace Group
Assuming the 90 days trading horizon Catena AB is expected to generate 0.22 times more return on investment than GomSpace Group. However, Catena AB is 4.47 times less risky than GomSpace Group. It trades about -0.32 of its potential returns per unit of risk. GomSpace Group AB is currently generating about -0.14 per unit of risk. If you would invest 46,846 in Catena AB on August 28, 2025 and sell it today you would lose (2,806) from holding Catena AB or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena AB vs. GomSpace Group AB
Performance |
| Timeline |
| Catena AB |
| GomSpace Group AB |
Catena AB and GomSpace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena AB and GomSpace Group
The main advantage of trading using opposite Catena AB and GomSpace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena AB position performs unexpectedly, GomSpace 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 GomSpace Group will offset losses from the drop in GomSpace Group's long position.| Catena AB vs. 24SevenOffice Scandinavia AB | Catena AB vs. Kinnevik Investment AB | Catena AB vs. Avanza Bank Holding | Catena AB vs. Lea Bank AB |
| GomSpace Group vs. Viva Wine Group | GomSpace Group vs. Invisio Communications AB | GomSpace Group vs. New Nordic Healthbrands | GomSpace Group vs. High Coast Distillery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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