Correlation Between Charter Communications and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Charter Communications and Catalyst 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 Charter Communications and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Communications Cl and Catalyst Media Group, you can compare the effects of market volatilities on Charter Communications and Catalyst 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 Charter Communications with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Communications and Catalyst Media.
Diversification Opportunities for Charter Communications and Catalyst Media
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Charter and Catalyst is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Charter Communications Cl and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group and Charter Communications 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 Charter Communications Cl are associated (or correlated) with Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Charter Communications i.e., Charter Communications and Catalyst Media go up and down completely randomly.
Pair Corralation between Charter Communications and Catalyst Media
Assuming the 90 days trading horizon Charter Communications Cl is expected to generate 1.12 times more return on investment than Catalyst Media. However, Charter Communications is 1.12 times more volatile than Catalyst Media Group. It trades about 0.13 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.41 per unit of risk. If you would invest 37,303 in Charter Communications Cl on September 3, 2024 and sell it today you would earn a total of 2,092 from holding Charter Communications Cl or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Communications Cl vs. Catalyst Media Group
Performance |
| Timeline |
| Charter Communications |
| Catalyst Media Group |
Charter Communications and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Communications and Catalyst Media
The main advantage of trading using opposite Charter Communications and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Communications position performs unexpectedly, Catalyst 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Charter Communications vs. Catalyst Media Group | Charter Communications vs. CATLIN GROUP | Charter Communications vs. Magnora ASA | Charter Communications vs. RTW Venture Fund |
| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |