Correlation Between Schroders Investment and Catena Media
Can any of the company-specific risk be diversified away by investing in both Schroders Investment 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 Schroders Investment and Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schroders Investment Trusts and Catena Media PLC, you can compare the effects of market volatilities on Schroders Investment 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 Schroders Investment with a short position of Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schroders Investment and Catena Media.
Diversification Opportunities for Schroders Investment and Catena Media
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Schroders and Catena is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Schroders Investment Trusts 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 Schroders Investment 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 Schroders Investment Trusts 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 Schroders Investment i.e., Schroders Investment and Catena Media go up and down completely randomly.
Pair Corralation between Schroders Investment and Catena Media
Assuming the 90 days trading horizon Schroders Investment Trusts is expected to generate 0.26 times more return on investment than Catena Media. However, Schroders Investment Trusts is 3.85 times less risky than Catena Media. It trades about 0.04 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.06 per unit of risk. If you would invest 39,169 in Schroders Investment Trusts on September 2, 2024 and sell it today you would earn a total of 8,131 from holding Schroders Investment Trusts or generate 20.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Schroders Investment Trusts vs. Catena Media PLC
Performance |
| Timeline |
| Schroders Investment |
| Catena Media PLC |
Schroders Investment and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schroders Investment and Catena Media
The main advantage of trading using opposite Schroders Investment and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schroders Investment 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.| Schroders Investment vs. Toyota Motor Corp | Schroders Investment vs. SoftBank Group Corp | Schroders Investment vs. OTP Bank Nyrt | Schroders Investment vs. Las Vegas Sands |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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