Correlation Between Infrastrutture Wireless and CATLIN GROUP

Can any of the company-specific risk be diversified away by investing in both Infrastrutture Wireless 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 Infrastrutture Wireless and CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infrastrutture Wireless Italiane and CATLIN GROUP , you can compare the effects of market volatilities on Infrastrutture Wireless 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 Infrastrutture Wireless with a short position of CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infrastrutture Wireless and CATLIN GROUP.

Diversification Opportunities for Infrastrutture Wireless and CATLIN GROUP

-0.32

Correlation Coefficient

Infrastrutture Wireless  CATLIN GROUP

Very good diversification

The 3 months correlation between Infrastrutture and CATLIN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Infrastrutture Wireless Italia and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP and Infrastrutture Wireless 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 Infrastrutture Wireless Italiane 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 Infrastrutture Wireless i.e., Infrastrutture Wireless and CATLIN GROUP go up and down completely randomly.

Pair Corralation between Infrastrutture Wireless and CATLIN GROUP

Assuming the 90 days trading horizon Infrastrutture Wireless Italiane is expected to generate 1.39 times more return on investment than CATLIN GROUP. However, Infrastrutture Wireless is 1.39 times more volatile than CATLIN GROUP . It trades about 0.16 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.06 per unit of risk. If you would invest  980.00  in Infrastrutture Wireless Italiane on April 24, 2025 and sell it today you would earn a total of  83.00  from holding Infrastrutture Wireless Italiane or generate 8.47% return on investment over 90 days.

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

Infrastrutture Wireless Italia  vs.  CATLIN GROUP

Infrastrutture Wireless

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Infrastrutture Wireless Italiane are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Infrastrutture Wireless may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CATLIN GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days CATLIN GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CATLIN GROUP is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Infrastrutture Wireless and CATLIN GROUP

The main advantage of trading using opposite Infrastrutture Wireless and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infrastrutture Wireless 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.

The idea behind Infrastrutture Wireless Italiane and CATLIN GROUP 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.