Correlation Between Catena Media and Supply@Me Capital
Can any of the company-specific risk be diversified away by investing in both Catena Media and Supply@Me Capital 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 Catena Media and Supply@Me Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catena Media PLC and SupplyMe Capital PLC, you can compare the effects of market volatilities on Catena Media and Supply@Me Capital 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 Catena Media with a short position of Supply@Me Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and Supply@Me Capital.
Diversification Opportunities for Catena Media and Supply@Me Capital
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catena and Supply@Me is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media PLC and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC and Catena Media 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 Catena Media PLC are associated (or correlated) with Supply@Me Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Catena Media i.e., Catena Media and Supply@Me Capital go up and down completely randomly.
Pair Corralation between Catena Media and Supply@Me Capital
Assuming the 90 days trading horizon Catena Media PLC is expected to under-perform the Supply@Me Capital. But the stock apears to be less risky and, when comparing its historical volatility, Catena Media PLC is 5.32 times less risky than Supply@Me Capital. The stock trades about -0.07 of its potential returns per unit of risk. The SupplyMe Capital PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on November 27, 2024 and sell it today you would earn a total of 0.11 from holding SupplyMe Capital PLC or generate 36.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media PLC vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Catena Media PLC |
| SupplyMe Capital PLC |
Catena Media and Supply@Me Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catena Media and Supply@Me Capital
The main advantage of trading using opposite Catena Media and Supply@Me Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media position performs unexpectedly, Supply@Me Capital 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 Supply@Me Capital will offset losses from the drop in Supply@Me Capital's long position.| Catena Media vs. Supermarket Income REIT | Catena Media vs. Leroy Seafood Group | Catena Media vs. Molson Coors Beverage | Catena Media vs. Edita Food Industries |
| Supply@Me Capital vs. Premier Foods PLC | Supply@Me Capital vs. Associated British Foods | Supply@Me Capital vs. Fevertree Drinks Plc | Supply@Me Capital vs. Sligro Food Group |
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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