Correlation Between Ryanair Holdings and Catena Media
Can any of the company-specific risk be diversified away by investing in both Ryanair Holdings 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 Ryanair Holdings and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ryanair Holdings plc and Catena Media PLC, you can compare the effects of market volatilities on Ryanair Holdings 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 Ryanair Holdings with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryanair Holdings and Catena Media.
Diversification Opportunities for Ryanair Holdings and Catena Media
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ryanair and Catena is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ryanair Holdings plc 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 Ryanair Holdings 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 Ryanair Holdings plc 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 Ryanair Holdings i.e., Ryanair Holdings and Catena Media go up and down completely randomly.
Pair Corralation between Ryanair Holdings and Catena Media
Assuming the 90 days trading horizon Ryanair Holdings plc is expected to generate 0.49 times more return on investment than Catena Media. However, Ryanair Holdings plc is 2.04 times less risky than Catena Media. It trades about 0.03 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.08 per unit of risk. If you would invest 129,300 in Ryanair Holdings plc on November 29, 2024 and sell it today you would earn a total of 37,000 from holding Ryanair Holdings plc or generate 28.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ryanair Holdings plc vs. Catena Media PLC
Performance |
| Timeline |
| Ryanair Holdings plc |
| Catena Media PLC |
Ryanair Holdings and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryanair Holdings and Catena Media
The main advantage of trading using opposite Ryanair Holdings and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryanair Holdings 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.| Ryanair Holdings vs. Induction Healthcare Group | Ryanair Holdings vs. Aurora Investment Trust | Ryanair Holdings vs. Target Healthcare REIT | Ryanair Holdings vs. Naturhouse Health SA |
| Catena Media vs. Kinnevik Investment AB | Catena Media vs. Zoom Video Communications | Catena Media vs. Coor Service Management | Catena Media vs. Litigation Capital Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |