Correlation Between Bioventix and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Bioventix 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 Bioventix and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioventix and Catalyst Media Group, you can compare the effects of market volatilities on Bioventix 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 Bioventix with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioventix and Catalyst Media.
Diversification Opportunities for Bioventix and Catalyst Media
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bioventix and Catalyst is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bioventix 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 Bioventix 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 Bioventix 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 Bioventix i.e., Bioventix and Catalyst Media go up and down completely randomly.
Pair Corralation between Bioventix and Catalyst Media
Assuming the 90 days trading horizon Bioventix is expected to under-perform the Catalyst Media. In addition to that, Bioventix is 1.49 times more volatile than Catalyst Media Group. It trades about -0.02 of its total potential returns per unit of risk. Catalyst Media Group is currently generating about 0.09 per unit of volatility. If you would invest 7,750 in Catalyst Media Group on September 5, 2024 and sell it today you would earn a total of 1,250 from holding Catalyst Media Group or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bioventix vs. Catalyst Media Group
Performance |
| Timeline |
| Bioventix |
| Catalyst Media Group |
Bioventix and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioventix and Catalyst Media
The main advantage of trading using opposite Bioventix and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioventix 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.| Bioventix vs. Viridian Therapeutics | Bioventix vs. Nationwide Building Society | Bioventix vs. Pinnacle West Capital | Bioventix vs. Digital Realty Trust |
| Catalyst Media vs. Rightmove PLC | Catalyst Media vs. Bioventix | Catalyst Media vs. VeriSign | Catalyst Media vs. Games Workshop Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |