Correlation Between Catalyst Media and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on Catalyst Media and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Deutsche Post.
Diversification Opportunities for Catalyst Media and Deutsche Post
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and Deutsche is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Catalyst Media i.e., Catalyst Media and Deutsche Post go up and down completely randomly.
Pair Corralation between Catalyst Media and Deutsche Post
Assuming the 90 days trading horizon Catalyst Media is expected to generate 9.38 times less return on investment than Deutsche Post. In addition to that, Catalyst Media is 1.26 times more volatile than Deutsche Post AG. It trades about 0.0 of its total potential returns per unit of risk. Deutsche Post AG is currently generating about 0.01 per unit of volatility. If you would invest 3,523 in Deutsche Post AG on September 3, 2024 and sell it today you would lose (42.00) from holding Deutsche Post AG or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Deutsche Post AG
Performance |
| Timeline |
| Catalyst Media Group |
| Deutsche Post AG |
Catalyst Media and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Deutsche Post
The main advantage of trading using opposite Catalyst Media and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's 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 |
| Deutsche Post vs. Catalyst Media Group | Deutsche Post vs. CATLIN GROUP | Deutsche Post vs. Magnora ASA | Deutsche Post 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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