Correlation Between Amedeo Air and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Amedeo Air 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 Amedeo Air and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and Catalyst Media Group, you can compare the effects of market volatilities on Amedeo Air 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 Amedeo Air with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Catalyst Media.
Diversification Opportunities for Amedeo Air and Catalyst Media
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amedeo and Catalyst is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four 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 Amedeo Air 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 Amedeo Air Four 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 Amedeo Air i.e., Amedeo Air and Catalyst Media go up and down completely randomly.
Pair Corralation between Amedeo Air and Catalyst Media
Assuming the 90 days trading horizon Amedeo Air Four is expected to generate 0.77 times more return on investment than Catalyst Media. However, Amedeo Air Four is 1.29 times less risky than Catalyst Media. It trades about 0.09 of its potential returns per unit of risk. Catalyst Media Group is currently generating about 0.0 per unit of risk. If you would invest 3,040 in Amedeo Air Four on September 3, 2024 and sell it today you would earn a total of 2,280 from holding Amedeo Air Four or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. Catalyst Media Group
Performance |
| Timeline |
| Amedeo Air Four |
| Catalyst Media Group |
Amedeo Air and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Catalyst Media
The main advantage of trading using opposite Amedeo Air and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air 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.| Amedeo Air vs. Catalyst Media Group | Amedeo Air vs. CATLIN GROUP | Amedeo Air vs. Magnora ASA | Amedeo Air vs. RTW Venture Fund |
| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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