Correlation Between Blue Star and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Blue Star 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 Blue Star and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Star Capital and Catalyst Media Group, you can compare the effects of market volatilities on Blue Star 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 Blue Star with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Catalyst Media.
Diversification Opportunities for Blue Star and Catalyst Media
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blue and Catalyst is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Capital 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 Blue Star 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 Blue Star Capital 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 Blue Star i.e., Blue Star and Catalyst Media go up and down completely randomly.
Pair Corralation between Blue Star and Catalyst Media
Assuming the 90 days trading horizon Blue Star Capital is expected to under-perform the Catalyst Media. In addition to that, Blue Star is 3.63 times more volatile than Catalyst Media Group. It trades about -0.05 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about -0.02 per unit of volatility. If you would invest 9,653 in Catalyst Media Group on September 19, 2024 and sell it today you would lose (1,403) from holding Catalyst Media Group or give up 14.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
Blue Star Capital vs. Catalyst Media Group
Performance |
| Timeline |
| Blue Star Capital |
| Catalyst Media Group |
Blue Star and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Star and Catalyst Media
The main advantage of trading using opposite Blue Star and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Star 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.| Blue Star vs. Catalyst Media Group | Blue Star vs. CATLIN GROUP | Blue Star vs. Tamburi Investment Partners | Blue Star 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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