Correlation Between Catalyst Media and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both Catalyst Media and Chocoladefabriken 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 Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Catalyst Media and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst Media and Chocoladefabriken.
Diversification Opportunities for Catalyst Media and Chocoladefabriken
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalyst and Chocoladefabriken is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Catalyst Media Group and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Catalyst Media i.e., Catalyst Media and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Catalyst Media and Chocoladefabriken
Assuming the 90 days trading horizon Catalyst Media Group is expected to under-perform the Chocoladefabriken. In addition to that, Catalyst Media is 1.39 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about -0.03 of its total potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about -0.01 per unit of volatility. If you would invest 10,465,000 in Chocoladefabriken Lindt Spruengli on September 4, 2024 and sell it today you would lose (425,000) from holding Chocoladefabriken Lindt Spruengli or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Catalyst Media Group vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| Catalyst Media Group |
| Chocoladefabriken Lindt |
Catalyst Media and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalyst Media and Chocoladefabriken
The main advantage of trading using opposite Catalyst Media and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalyst Media position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.| Catalyst Media vs. STMicroelectronics NV | Catalyst Media vs. TR Property Investment | Catalyst Media vs. Monks Investment Trust | Catalyst Media vs. Smithson Investment Trust |
| Chocoladefabriken vs. Spirent Communications plc | Chocoladefabriken vs. Automatic Data Processing | Chocoladefabriken vs. Eastman Chemical Co | Chocoladefabriken vs. Zoom Video Communications |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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