Correlation Between Catalyst Media and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical AG, you can compare the effects of market volatilities on Catalyst Media and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and CompuGroup Medical.
Diversification Opportunities for Catalyst Media and CompuGroup Medical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Catalyst and CompuGroup is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Catalyst Media i.e., Catalyst Media and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Catalyst Media and CompuGroup Medical
Assuming the 90 days trading horizon Catalyst Media Group is expected to generate 0.49 times more return on investment than CompuGroup Medical. However, Catalyst Media Group is 2.05 times less risky than CompuGroup Medical. It trades about -0.01 of its potential returns per unit of risk. CompuGroup Medical AG is currently generating about -0.1 per unit of risk. If you would invest 10,250 in Catalyst Media Group on August 27, 2024 and sell it today you would lose (600.00) from holding Catalyst Media Group or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. CompuGroup Medical AG
Performance |
| Timeline |
| Catalyst Media Group |
| CompuGroup Medical |
Catalyst Media and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and CompuGroup Medical
The main advantage of trading using opposite Catalyst Media and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Catalyst Media vs. Toyota Motor Corp | Catalyst Media vs. SoftBank Group Corp | Catalyst Media vs. Fannie Mae | Catalyst Media vs. State Bank of |
| CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Samsung Electronics Co | CompuGroup Medical vs. Hyundai Motor | CompuGroup Medical 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |