Correlation Between Catalyst Media and Public Storage
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on Catalyst Media and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Public Storage.
Diversification Opportunities for Catalyst Media and Public Storage
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Public is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Catalyst Media i.e., Catalyst Media and Public Storage go up and down completely randomly.
Pair Corralation between Catalyst Media and Public Storage
Assuming the 90 days trading horizon Catalyst Media is expected to generate 1.62 times less return on investment than Public Storage. In addition to that, Catalyst Media is 1.06 times more volatile than Public Storage. It trades about 0.09 of its total potential returns per unit of risk. Public Storage is currently generating about 0.16 per unit of volatility. If you would invest 27,218 in Public Storage on September 3, 2024 and sell it today you would earn a total of 7,845 from holding Public Storage or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Catalyst Media Group vs. Public Storage
Performance |
| Timeline |
| Catalyst Media Group |
| Public Storage |
Catalyst Media and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Public Storage
The main advantage of trading using opposite Catalyst Media and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage'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 |
| Public Storage vs. Catalyst Media Group | Public Storage vs. CATLIN GROUP | Public Storage vs. Magnora ASA | Public Storage 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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