Correlation Between CAP LEASE and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both CAP LEASE 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 CAP LEASE and Catalyst Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAP LEASE AVIATION and Catalyst Media Group, you can compare the effects of market volatilities on CAP LEASE 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 CAP LEASE with a short position of Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAP LEASE and Catalyst Media.
Diversification Opportunities for CAP LEASE and Catalyst Media
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CAP and Catalyst is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CAP LEASE AVIATION 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 CAP LEASE 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 CAP LEASE AVIATION 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 CAP LEASE i.e., CAP LEASE and Catalyst Media go up and down completely randomly.
Pair Corralation between CAP LEASE and Catalyst Media
Assuming the 90 days trading horizon CAP LEASE AVIATION is expected to under-perform the Catalyst Media. In addition to that, CAP LEASE is 1.84 times more volatile than Catalyst Media Group. It trades about -0.03 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 11,016 in Catalyst Media Group on September 23, 2024 and sell it today you would lose (2,766) from holding Catalyst Media Group or give up 25.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.41% |
| Values | Daily Returns |
CAP LEASE AVIATION vs. Catalyst Media Group
Performance |
| Timeline |
| CAP LEASE AVIATION |
| Catalyst Media Group |
CAP LEASE and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAP LEASE and Catalyst Media
The main advantage of trading using opposite CAP LEASE and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAP LEASE 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.| CAP LEASE vs. DXC Technology Co | CAP LEASE vs. International Biotechnology Trust | CAP LEASE vs. Liontrust Asset Management | CAP LEASE vs. Albion Technology General |
| Catalyst Media vs. Cellnex Telecom SA | Catalyst Media vs. CAP LEASE AVIATION | Catalyst Media vs. Zoom Video Communications | Catalyst Media vs. Compagnie Plastic Omnium |
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 Directory module to find actively traded commodities issued by global exchanges.
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