Correlation Between ACG Acquisition and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both ACG Acquisition 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 ACG Acquisition and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Acquisition Co and Catalyst Media Group, you can compare the effects of market volatilities on ACG Acquisition 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 ACG Acquisition with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Acquisition and Catalyst Media.
Diversification Opportunities for ACG Acquisition and Catalyst Media
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACG and Catalyst is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ACG Acquisition Co 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 ACG Acquisition 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 ACG Acquisition Co 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 ACG Acquisition i.e., ACG Acquisition and Catalyst Media go up and down completely randomly.
Pair Corralation between ACG Acquisition and Catalyst Media
Assuming the 90 days trading horizon ACG Acquisition Co is expected to generate 58.84 times more return on investment than Catalyst Media. However, ACG Acquisition is 58.84 times more volatile than Catalyst Media Group. It trades about 0.09 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.03 per unit of risk. If you would invest 625.00 in ACG Acquisition Co on September 14, 2024 and sell it today you would lose (115.00) from holding ACG Acquisition Co or give up 18.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACG Acquisition Co vs. Catalyst Media Group
Performance |
| Timeline |
| ACG Acquisition |
| Catalyst Media Group |
ACG Acquisition and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Acquisition and Catalyst Media
The main advantage of trading using opposite ACG Acquisition and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Acquisition 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.| ACG Acquisition vs. Catalyst Media Group | ACG Acquisition vs. CATLIN GROUP | ACG Acquisition vs. Tamburi Investment Partners | ACG Acquisition vs. Magnora ASA |
| Catalyst Media vs. Berkshire Hathaway | Catalyst Media vs. Chocoladefabriken Lindt Spruengli | Catalyst Media vs. Rockwood Realisation PLC | Catalyst Media vs. Toyota Motor Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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