Correlation Between Catalyst Media and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Arcticzymes Technologies 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 Catalyst Media and Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalyst Media Group and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Catalyst Media and Arcticzymes Technologies 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 Catalyst Media with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Arcticzymes Technologies.
Diversification Opportunities for Catalyst Media and Arcticzymes Technologies
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catalyst and Arcticzymes is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies and Catalyst 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 Catalyst Media Group are associated (or correlated) with Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of Catalyst Media i.e., Catalyst Media and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between Catalyst Media and Arcticzymes Technologies
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 0.51 times more return on investment than Arcticzymes Technologies. However, Catalyst Media Group is 1.95 times less risky than Arcticzymes Technologies. It trades about -0.03 of its potential returns per unit of risk. Arcticzymes Technologies ASA is currently generating about -0.08 per unit of risk. If you would invest 11,600 in Catalyst Media Group on September 3, 2024 and sell it today you would lose (2,600) from holding Catalyst Media Group or give up 22.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Catalyst Media Group vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| Catalyst Media Group |
| Arcticzymes Technologies |
Catalyst Media and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Arcticzymes Technologies
The main advantage of trading using opposite Catalyst Media and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile Investment |
| Arcticzymes Technologies vs. Catalyst Media Group | Arcticzymes Technologies vs. CATLIN GROUP | Arcticzymes Technologies vs. Magnora ASA | Arcticzymes Technologies vs. RTW Venture Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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