Correlation Between Centaur Media and NatWest Group
Can any of the company-specific risk be diversified away by investing in both Centaur Media and NatWest Group 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 Centaur Media and NatWest Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and NatWest Group PLC, you can compare the effects of market volatilities on Centaur Media and NatWest Group 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 Centaur Media with a short position of NatWest Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and NatWest Group.
Diversification Opportunities for Centaur Media and NatWest Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centaur and NatWest is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and NatWest Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NatWest Group PLC and Centaur Media 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 Centaur Media are associated (or correlated) with NatWest Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NatWest Group PLC has no effect on the direction of Centaur Media i.e., Centaur Media and NatWest Group go up and down completely randomly.
Pair Corralation between Centaur Media and NatWest Group
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the NatWest Group. In addition to that, Centaur Media is 2.04 times more volatile than NatWest Group PLC. It trades about -0.15 of its total potential returns per unit of risk. NatWest Group PLC is currently generating about 0.24 per unit of volatility. If you would invest 33,210 in NatWest Group PLC on September 12, 2024 and sell it today you would earn a total of 7,720 from holding NatWest Group PLC or generate 23.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Centaur Media vs. NatWest Group PLC
Performance |
| Timeline |
| Centaur Media |
| NatWest Group PLC |
Centaur Media and NatWest Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and NatWest Group
The main advantage of trading using opposite Centaur Media and NatWest Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, NatWest Group 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 NatWest Group will offset losses from the drop in NatWest Group's long position.| Centaur Media vs. Quantum Blockchain Technologies | Centaur Media vs. Versarien PLC | Centaur Media vs. Argo Group Limited | Centaur Media vs. Tungsten West PLC |
| NatWest Group vs. Melia Hotels | NatWest Group vs. InterContinental Hotels Group | NatWest Group vs. AcadeMedia AB | NatWest Group vs. Centaur Media |
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.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets |