Correlation Between Eiffage SA and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Eiffage SA 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 Eiffage SA and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eiffage SA and Catalyst Media Group, you can compare the effects of market volatilities on Eiffage SA 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 Eiffage SA with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eiffage SA and Catalyst Media.
Diversification Opportunities for Eiffage SA and Catalyst Media
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eiffage and Catalyst is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eiffage SA 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 Eiffage SA 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 Eiffage SA 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 Eiffage SA i.e., Eiffage SA and Catalyst Media go up and down completely randomly.
Pair Corralation between Eiffage SA and Catalyst Media
Assuming the 90 days trading horizon Eiffage SA is expected to generate 0.68 times more return on investment than Catalyst Media. However, Eiffage SA is 1.47 times less risky than Catalyst Media. 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 8,600 in Eiffage SA on September 4, 2024 and sell it today you would lose (347.00) from holding Eiffage SA or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eiffage SA vs. Catalyst Media Group
Performance |
| Timeline |
| Eiffage SA |
| Catalyst Media Group |
Eiffage SA and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eiffage SA and Catalyst Media
The main advantage of trading using opposite Eiffage SA and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eiffage SA 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.| Eiffage SA vs. CNH Industrial NV | Eiffage SA vs. Panther Metals PLC | Eiffage SA vs. Melia Hotels | Eiffage SA vs. Mindflair Plc |
| Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. TR Property Investment | Catalyst Media vs. Monks Investment Trust | Catalyst Media vs. Smithson Investment Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |