Correlation Between Catalyst Media and Raymond James
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Raymond James 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 Raymond James 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 Raymond James Financial, you can compare the effects of market volatilities on Catalyst Media and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Raymond James.
Diversification Opportunities for Catalyst Media and Raymond James
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and Raymond is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Catalyst Media i.e., Catalyst Media and Raymond James go up and down completely randomly.
Pair Corralation between Catalyst Media and Raymond James
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Raymond James. In addition to that, Catalyst Media is 1.49 times more volatile than Raymond James Financial. It trades about -0.01 of its total potential returns per unit of risk. Raymond James Financial is currently generating about 0.27 per unit of volatility. If you would invest 15,469 in Raymond James Financial on November 3, 2024 and sell it today you would earn a total of 1,632 from holding Raymond James Financial or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Catalyst Media Group vs. Raymond James Financial
Performance |
| Timeline |
| Catalyst Media Group |
| Raymond James Financial |
Catalyst Media and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Raymond James
The main advantage of trading using opposite Catalyst Media and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Catalyst Media vs. Take Two Interactive Software | Catalyst Media vs. Scandic Hotels Group | Catalyst Media vs. Allianz Technology Trust | Catalyst Media vs. Roper Technologies |
| Raymond James vs. Air Products Chemicals | Raymond James vs. MyHealthChecked Plc | Raymond James vs. Abingdon Health Plc | Raymond James vs. Spire Healthcare Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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