Correlation Between Catalyst Media and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on Catalyst Media and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Vienna Insurance.
Diversification Opportunities for Catalyst Media and Vienna Insurance
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalyst and Vienna is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Catalyst Media i.e., Catalyst Media and Vienna Insurance go up and down completely randomly.
Pair Corralation between Catalyst Media and Vienna Insurance
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Vienna Insurance. In addition to that, Catalyst Media is 1.63 times more volatile than Vienna Insurance Group. It trades about -0.03 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.07 per unit of volatility. If you would invest 2,492 in Vienna Insurance Group on September 3, 2024 and sell it today you would earn a total of 431.00 from holding Vienna Insurance Group or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catalyst Media Group vs. Vienna Insurance Group
Performance |
| Timeline |
| Catalyst Media Group |
| Vienna Insurance |
Catalyst Media and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Vienna Insurance
The main advantage of trading using opposite Catalyst Media and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance'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 |
| Vienna Insurance vs. Catalyst Media Group | Vienna Insurance vs. CATLIN GROUP | Vienna Insurance vs. Magnora ASA | Vienna Insurance 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |