Correlation Between Catalyst Media and Global Net
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Global Net 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 Global Net 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 Global Net Lease, you can compare the effects of market volatilities on Catalyst Media and Global Net 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 Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Global Net.
Diversification Opportunities for Catalyst Media and Global Net
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and Global is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease 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 Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Catalyst Media i.e., Catalyst Media and Global Net go up and down completely randomly.
Pair Corralation between Catalyst Media and Global Net
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Global Net. In addition to that, Catalyst Media is 1.23 times more volatile than Global Net Lease. It trades about -0.41 of its total potential returns per unit of risk. Global Net Lease is currently generating about -0.13 per unit of volatility. If you would invest 771.00 in Global Net Lease on September 4, 2024 and sell it today you would lose (38.00) from holding Global Net Lease or give up 4.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Catalyst Media Group vs. Global Net Lease
Performance |
| Timeline |
| Catalyst Media Group |
| Global Net Lease |
Catalyst Media and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Global Net
The main advantage of trading using opposite Catalyst Media and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. TR Property Investment | Catalyst Media vs. Monks Investment Trust | Catalyst Media vs. Smithson Investment Trust |
| Global Net vs. Samsung Electronics Co | Global Net vs. Samsung Electronics Co | Global Net vs. Hyundai Motor | Global Net vs. Toyota Motor Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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