Correlation Between Systemair and Catena Media
Can any of the company-specific risk be diversified away by investing in both Systemair and Catena Media 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 Systemair and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Catena Media PLC, you can compare the effects of market volatilities on Systemair and Catena Media 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 Systemair with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Catena Media.
Diversification Opportunities for Systemair and Catena Media
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Catena is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Catena Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media PLC and Systemair 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 Systemair AB are associated (or correlated) with Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media PLC has no effect on the direction of Systemair i.e., Systemair and Catena Media go up and down completely randomly.
Pair Corralation between Systemair and Catena Media
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.52 times more return on investment than Catena Media. However, Systemair AB is 1.94 times less risky than Catena Media. It trades about 0.03 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.08 per unit of risk. If you would invest 8,119 in Systemair AB on August 31, 2024 and sell it today you would earn a total of 1,091 from holding Systemair AB or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Systemair AB vs. Catena Media PLC
Performance |
| Timeline |
| Systemair AB |
| Catena Media PLC |
Systemair and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Catena Media
The main advantage of trading using opposite Systemair and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| Systemair vs. Dentsply Sirona | Systemair vs. Liontrust Asset Management | Systemair vs. Atresmedia | Systemair vs. Liberty Media Corp |
| Catena Media vs. Neometals | Catena Media vs. Coor Service Management | Catena Media vs. Aeorema Communications Plc | Catena Media vs. JLEN Environmental Assets |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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