Correlation Between Coor Service and Catena Media
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Catena Media PLC, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Catena Media.
Diversification Opportunities for Coor Service and Catena Media
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Coor and Catena is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management 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 Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Catena Media go up and down completely randomly.
Pair Corralation between Coor Service and Catena Media
Assuming the 90 days trading horizon Coor Service Management is expected to generate 0.48 times more return on investment than Catena Media. However, Coor Service Management is 2.09 times less risky than Catena Media. It trades about -0.01 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.09 per unit of risk. If you would invest 3,665 in Coor Service Management on September 1, 2024 and sell it today you would lose (316.00) from holding Coor Service Management or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. Catena Media PLC
Performance |
| Timeline |
| Coor Service Management |
| Catena Media PLC |
Coor Service and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Catena Media
The main advantage of trading using opposite Coor Service and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. Uniper SE | Coor Service vs. Mulberry Group PLC | Coor Service vs. London Security Plc | Coor Service vs. Triad Group PLC |
| Catena Media vs. Uniper SE | Catena Media vs. Mulberry Group PLC | Catena Media vs. London Security Plc | Catena Media vs. Triad Group PLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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