Correlation Between Catalyst Media and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Magnora ASA 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 Magnora ASA 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 Magnora ASA, you can compare the effects of market volatilities on Catalyst Media and Magnora ASA 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 Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Magnora ASA.
Diversification Opportunities for Catalyst Media and Magnora ASA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and Magnora is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA 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 Magnora ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnora ASA has no effect on the direction of Catalyst Media i.e., Catalyst Media and Magnora ASA go up and down completely randomly.
Pair Corralation between Catalyst Media and Magnora ASA
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Magnora ASA. But the stock apears to be less risky and, when comparing its historical volatility, Catalyst Media Group is 2.99 times less risky than Magnora ASA. The stock trades about -0.02 of its potential returns per unit of risk. The Magnora ASA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,420 in Magnora ASA on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Magnora ASA or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Catalyst Media Group vs. Magnora ASA
Performance |
| Timeline |
| Catalyst Media Group |
| Magnora ASA |
Catalyst Media and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Magnora ASA
The main advantage of trading using opposite Catalyst Media and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Magnora ASA 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 Magnora ASA will offset losses from the drop in Magnora ASA's long position.| Catalyst Media vs. Walmart | Catalyst Media vs. BYD Co | Catalyst Media vs. Volkswagen AG | Catalyst Media vs. Volkswagen AG Non Vtg |
| Magnora ASA vs. Wheaton Precious Metals | Magnora ASA vs. Power Metal Resources | Magnora ASA vs. Panther Metals PLC | Magnora ASA vs. Royal Bank of |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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