Correlation Between Santeon and CTPartners Executive

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

By analyzing existing cross correlation between Santeon Group and CTPartners Executive Search, you can compare the effects of market volatilities on Santeon and CTPartners Executive 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 Santeon with a short position of CTPartners Executive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santeon and CTPartners Executive.

Diversification Opportunities for Santeon and CTPartners Executive

-0.87

Correlation Coefficient

Santeon  CTPartners Executive

Pay attention - limited upside

The 3 months correlation between Santeon and CTPartners is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Santeon Group and CTPartners Executive Search in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTPartners Executive and Santeon 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 Santeon Group are associated (or correlated) with CTPartners Executive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTPartners Executive has no effect on the direction of Santeon i.e., Santeon and CTPartners Executive go up and down completely randomly.

Pair Corralation between Santeon and CTPartners Executive

If you would invest  3.00  in Santeon Group on September 14, 2024 and sell it today you would earn a total of  2.00  from holding Santeon Group or generate 66.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

Santeon Group  vs.  CTPartners Executive Search

Santeon Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Santeon Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Santeon unveiled solid returns over the last few months and may actually be approaching a breakup point.

CTPartners Executive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CTPartners Executive Search has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CTPartners Executive 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 Santeon and CTPartners Executive

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

The idea behind Santeon Group and CTPartners Executive Search 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.