Correlation Between Trip Group and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Trip Group 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 Trip Group and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trip Group Ltd and Catalyst Media Group, you can compare the effects of market volatilities on Trip Group 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 Trip Group with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and Catalyst Media.
Diversification Opportunities for Trip Group and Catalyst Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trip and Catalyst is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Trip Group Ltd 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 Trip Group 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 Trip Group Ltd 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 Trip Group i.e., Trip Group and Catalyst Media go up and down completely randomly.
Pair Corralation between Trip Group and Catalyst Media
If you would invest (100.00) in Trip Group Ltd on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Trip Group Ltd or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Trip Group Ltd vs. Catalyst Media Group
Performance |
| Timeline |
| Trip Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Catalyst Media Group |
Trip Group and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trip Group and Catalyst Media
The main advantage of trading using opposite Trip Group and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trip Group 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.| Trip Group vs. Cizzle Biotechnology Holdings | Trip Group vs. CleanTech Lithium plc | Trip Group vs. Silvercorp Metals | Trip Group vs. International Consolidated Airlines |
| Catalyst Media vs. Charter Communications Cl | Catalyst Media vs. Cairo Communication SpA | Catalyst Media vs. Gamma Communications PLC | Catalyst Media vs. Lowland Investment Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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